Keppel & Shell for Singapore LNG

July 18, 2016 in Companies, Dual Fuel, LNG, Marine by Rich Piellisch  |  No Comments

LNG-Fueled Tugboats Are Likely to Be First

Tugboats with removable fuel tanks are likely to the first liquefied natural gas-fueled vessels to operate in Singapore as a unit of Keppel Offshore & Marine and Shell Eastern Petroleum have formed a 50-50 joint venture to establish an LNG bunkering business in the world crossroads port.

Tugboats with removable fuel tanks are likely to be the first LNG-fueled vessels to operate in Singapore.

Tugboats with removable fuel tanks are likely to be the first LNG-fueled vessels to operate in Singapore.

Singapore has long been preparing for the use of LNG as a marine fuel, with MPA, the Maritime and Port Authority of Singapore, granting bunkering licenses and sponsoring vessel development and bunkering programs, and Singapore LNG making provision for LNG bunkering at its Jurong Island import terminal.

Key MPA License Is in Hand

Keppel and the BG Group – now part of Shell – were awarded an LNG bunkering license by MPA early this year (HHP Insight, January 29).

The new entity with Shell, established via Keppel’s KS Investments unit, is a Singapore incorporated joint venture company named JVCO.

LNG Fuel & Related Services

“JVCO will establish a LNG bunkering business in Singapore,” states a release. “Its principal business activities will be to supply LNG bunkering operations services in Singapore to ships and any other marine vessels in the Singapore port and other related services.”

In addition to supporting the new LNG-fueled tugs with twin removable 20-cubic-meter (5,200-gallon) tanks, JVCO is expected – when demand develops – to provide truck-to-ship LNG bunkering services. Higher-volume shore-to-ship bunkering will eventually follow. The tugs will have LNG-diesel dual fuel engines, likely from Japan’s Niigata. Niigata has supplied its 28AHX-DF engines for an LNG-diesel dual fuel tugboat project in Japan (HHP Insight, December 4, 2014).

Singapore’s Business Times ran an informative report on Keppel’s LNG tugs this past autumn.

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Source: Keppel Corp with HHP Insight follow-up

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