Singapore injects more capital to fund LNG bunker vessel newbuilds

Applications now open for interested firms to apply for funding of up to S$3m per vessel.

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Updated on 14 Dec 2017 09:47 GMT

The Maritime and Port Authority of Singapore (MPA) has injected another S$12 million (US$8.9 million) to boost LNG bunkering in the port of Singapore. Half of the amount has been set aside to co-fund the construction of new LNG bunker vessels (LBVs) to facilitate the development of ship-to-ship LNG bunkering at the Asian port. The remaining half is to be used to top up the MPA's existing co-funding programme to support the building of LNG-fuelled vessels. Launched in 2015, the initial S$12 million funding for this initiative 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$2 million per vessel. Applications for the new fund for the development of LBVs are now open and the MPA is inviting interested companies to apply for funding of up to S$3 million (US$2.2 million) per LBV. To apply, companies must be incorporated in Singapore, and the funded vessels must be registered with the Singapore Registry of Ships and licensed for bunkering activity in the Port of Singapore for a period of at least five years. Applicants must also submit a business plan for the proposed LBV, which should include working with the MPA's existing LNG bunker supply licensees, where applicable. Applications will need to be submitted before the deadline on March 31, 2018. Andrew Tan, chief executive of the MPA, said: "With the implementation of the International Maritime Organization’s (IMO) 0.5 per cent global sulphur cap on 1 January 2020, LNG is a viable and tested solution for shipowners. As the world's largest bunkering hub, MPA will support future demand by promoting the development of ship-to-ship LNG bunkering in the Port of Singapore. This will provide the industry greater confidence in the availability of LNG supply across key shipping routes." On Wednesday, Bunker Index reported that Germany's Federal Ministry of Transport and Digital Infrastructure (BMVI) is now accepting online applications to fund the conversion of ships to run on LNG bunkers. Projects will be eligible to receive funding for up to 60 percent of project costs, BMVI said.