Keppel and Shell in 1st commercial Singapore LNG bunkering

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

The LNG bunker transfer was done by a truck-to-ship method to the floating liquefaction (FLNG) vessel, Hilli Episeyo, that is expected to arrive in Cameroon later this year.

The transfer was carried out in batches from 22 July to 23 September 2017, according to a joint statement.

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

FueLNG is committed to building the LNG bunkering industry in Singapore, and is working with relevant local authorities to provide safe truck and vessel bunkering solutions, the statement reads.

The JV 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 early this year. Under the programme, the MPA has provided various companies with grants of up to S$2 million per LNG-powered vessel constructed.

Global industry players are poised to pursue greener and more sustainable solutions with the implementation of environmental regulations such as the International Maritime Organisation’s (IMO) new 0.5% global sulphur cap on fuel content effective from 1 January 2020.

According to DNV GL, the use of LNG completely removes SOx and particulates, and reduces NOx and carbon dioxide emissions by 85 percent and at least 20 percent respectively.

As of March 2017, there were 102 LNG-fuelled ships in operation and 108 on order, DNV GL’s data shows.