BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry

« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa

BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News

FueLNG and Pavilion Gas awarded S$6m to build LNG bunker vessels

MPA funding is designed to promote ship-to-ship LNG bunkering in Singapore.

Merlion statue, located at Merlion Park, Singapore. Image credit: Bernard Spragg Flickr CC0 1.0

Updated on 04 Jun 2018 06:19 GMT

The Maritime and Port Authority of Singapore (MPA) has awarded S$6 million (US$4.49m) to FueLNG Pte Ltd and Pavilion Gas Pte Ltd for the construction of two LNG bunker vessels in a move designed to promote ship-to-ship LNG bunkering in Singapore.

Pavilion Gas and Keppel-Shell joint venture firm FueLNG will each receive a co-funding grant of up to S$3m for their LNG bunker vessel. The two companies were the only two to be awarded an LNG bunker supplier licence by the MPA back in 2016.

The vessels, slated for delivery in 2020, are set to be amongst the first of their kind in Asia.

The allocation of S$6m financing represents the previously announced figure set aside - which is half of a S$12m (US$8.9m) cash injection - to co-fund the construction of new LNG bunker vessels at the Asian port.

The remaining half of the S$12m fund, revealed in December, is to be used to top up the MPA's existing co-funding programme to support the building of LNG-fuelled vessels.

The first S$12m funding for this initiative, launched in 2015, has been utilized to support the construction of LNG-fuelled vessels for Keppel SMIT Towage Pte Ltd, Maju Maritime Pte Ltd, Harley Marine Asia Pte Ltd, Sinanju Tankers Pte Ltd, and, most recently, PSA Marine (Pte) Ltd. It allowed for co-funding of up to S$2m per vessel - S$1m less than the latest S$3m grants for the construction of LNG bunker vessels.

Commenting on the latest development, Andrew Tan, MPA chief executive, said: "LNG is a viable marine fuel solution to meet global environmental regulations such as the International Maritime Organization's (IMO) 0.5% global sulphur cap from 1 January 2020. As the world's largest bunkering hub, we are pleased to support the building of the first two LNG bunker supply vessels for the Port of Singapore. We look forward to the successful applicants contributing to the growth of ship-to-ship LNG bunkering in the Port of Singapore."

Chris Ong, chairman of FueLNG, remarked: "The MPA grant boosts our plans to provide ship-to-ship bunkering in addition to truck-to-ship bunkering for ship owners. Leveraging expertise from both Keppel and Shell, FueLNG aims to provide safe, cost-efficient and reliable solutions in LNG bunkering for global customers who pass through the Port of Singapore, which will encourage the adoption of LNG as a marine fuel."

Frederic Barnaud, Group chief executive officer of Pavilion Energy, commented: "We are pleased to receive the MPA grant for the construction of an LNG bunker vessel. Pavilion Gas' commitment to build its LNG bunkering business and infrastructure in Singapore and globally is a strong signal to shipowners and the bunkering community that LNG is a credible solution to achieve IMO's 2020 ruling."

Related Links:

Singapore injects more capital to fund LNG bunker vessel newbuilds
MPA outlines funding eligibility for distillate MFMs in Singapore
Singapore achieves best 12-month sales figure in its history
Singapore to withdraw port dues concession in July

Latest News:

IBIA posts advice following spate of fuel quality issues
Oil and fuel oil hedging market update
Port infrastructure 'ill-prepared' for LNG bunker growth: Costa Cruises
Costa Cruises outlines fuel-related measures in Sustainability Report
VLCC with bunker-saving features delivered in China
Oil prices dropped sharply on Friday on various news and events
Van Oord inks accord to test semi-dry scrubber system
Fenosa performs Valencia's first LNG bunker delivery
Pilot agreement signed for fuel-saving 'car wash for ships' in Rotterdam
Oil and fuel oil hedging market update
Bunker boost for Australia as Carnival confirms record cruise sailings
Saudi/Russia back exit from oil production deal, Libya supply disruptions

Page Links:

Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Cape Town
Las Palmas
New Orleans
Rio de Janeiro
Latest News
Middle East
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Fuel Quality
Lubes & Additives
Oil Spills
Port News
Services, Products, Technology
Statistics & Research
Contact & Terms
Contact Us
Terms & Conditions
Privacy Policy
Upcoming Events