FueLNG Conducts 1st Commercial LNG Bunkering in Singapore

FueLNG, a joint venture between Keppel and Shell Eastern Petroleum (Shell), has carried out the first commercial liquefied natural gas (LNG) bunker transfer in Singapore. 

The LNG bunker transfer, which was carried out in batches from 22 July to 23 September 2017, took the form of a truck-to-ship bunkering of the floating liquefaction (FLNG) vessel, Hilli Episeyo.

This marks the first LNG trucking operation for FueLNG, following the facilitation of Singapore LNG’s (SLNG) gas-up/cool-down and reload operation at its Jurong Island terminal of the Cardissa, Shell’s LNG bunker vessel, in June 2017.

“This is an exciting milestone for FueLNG as we establish ourselves as a safe, cost-efficient and reliable LNG bunker supplier. The development of proven LNG bunkering infrastructure will give confidence to the industry that LNG can be widely adopted as a marine fuel and is sustainable for the long-term,” Michael Chia, Chairman of FueLNG Ltd, said.

FueLNG has also secured contracts from Keppel Smit Towage and Maju Maritime to provide LNG bunkering services for two dual-fuel LNG harbour tugs. These contracts will commence in 2018 when construction of the tugs is completed.

To promote Singapore as an LNG bunker-ready port, the Maritime and Port Authority of Singapore (MPA) commenced its LNG bunkering pilot programme (LBPP) early this year. Under the LBPP, the MPA has provided various companies with grants of up to SD 2 million per LNG-powered vessel constructed.

“As the leading bunkering port in the world, MPA is committed to cater to the future energy needs of the global shipping industry via cleaner, alternative sources of fuels such as LNG. We will continue to work closely with our stakeholders to develop our capabilities in preparation for a larger uptake of LNG bunkering in the future,” Andrew Tan, Chief Executive of MPA, said.

The approaching International Maritime Organisation’s (IMO) 0.5% global sulphur cap on fuel content effective from 1 January 2020 has seen numerous owners switch to LNG as marine fuel.

As of March 2017, there are 102 LNG-fuelled ships in operation and 108 on order.