Keppel and BG Win LNG Bunkering Gig in Singapore
The Maritime and Port Authority of Singapore (MPA) has selected Keppel Offshore & Marine Ltd (Keppel O&M), through its wholly-owned subsidiary KS Investments Pte Ltd (KSI), and BG Group plc (BG Group) to supply Liquefied Natural Gas (LNG) bunker to vessels in the Port of Singapore.
The awarding of the licence is in line with the Port of Singapore’s plans to launch the LNG Bunkering Pilot Programme in 2017.
With the granting of the licence, Keppel O&M and BG Group will work on forming a 50-50 joint venture to deliver an end-to-end bunkering solution using LNG sourced from BG Group and leveraging Keppel O&M’s expertise in LNG vessel servicing.
“Singapore is one of the world’s most important strategic ports and we are excited about the prospect of supplying LNG as a fuel for ships in this key market, with first delivery expected in 2017. LNG produces considerably lower emissions than conventional marine fuel and can significantly reduce a vessel’s environmental impact,” says Steve Hill, Executive Vice President, Global Energy Marketing and Shipping, BG Group.
The new venture builds on BG Group’s existing role as the exclusive aggregator for Singapore’s first 3 million tonnes per annum of LNG demand. Following the start of commercial operations at Singapore LNG Corporation’s LNG terminal in May 2013, BG Group has to date delivered 72 cargoes into Singapore from its global LNG portfolio
“Together with Keppel’s years of experience and expertise in servicing vessels including gas carriers, we will be able to provide strong support to MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia. As the shipping industry’s demand for green solutions continues to rise, we will also be able to help meet the needs for sustainable shipping with our growing LNG solutions, such as tug designs with dual-fuel diesel LNG engines and the retrofitting of vessel engines to run on LNG,” said Chow Yew Yuen, Chief Executive Officer, Keppel O&M.