Pavilion Gas to supply PSA Marine tugs with LNG bunkers

The two dual-fuel harbour tugs are scheduled to be delivered in 2019.



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Updated on 19 Dec 2017 13:14 GMT

Pavilion Gas, a wholly owned subsidiary of Pavilion Energy, has been awarded a contract to supply LNG to vessels owned and operated by PSA Marine (Pte) Ltd.

Under the agreement, LNG bunkers are to be supplied to two PSA Marine newbuild, dual-fuel harbour tugs that are due to be delivered in 2019.

"Pavilion Gas is delighted to be awarded the contract by PSA Marine for the supply of LNG bunkers to two of its dual fuel LNG harbour tugs," remarked Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas.

"This is an important step forward for Pavilion Gas as LNG bunkering is a key driver for LNG demand growth. We look forward to playing a key role in developing the LNG bunkering ecosystem in Singapore and the region," he added.

Pavilion Gas is one of two companies to be awarded an LNG bunker supplier licence by the Maritime Port Authority of Singapore (MPA) - together with Keppel-Shell joint venture company FueLNG Ltd.

A year ago, Pavilion announced that it was teaming up with ExxonMobil to carry out LNG bunkering at the port of Singapore. Since then, the company has also signed a memorandum of understanding (MoU) with Harley Marine, Mitsui O.S.K. Lines and Mitsui & Co. to jointly participate in the MPA's LNG bunkering pilot programme, and agreed to supply LNG bunkers to Total for deliveries in Singapore.

Last week, PSA Marine awarded a contract to build one dual-fuel LNG harbour tug. The company said that it will be awarding another contract to build its second dual-fuel LNG harbour tug in January 2018.

As part of Singapore's funding initiative for LNG vessels, PSA Marine will receive a grant of up to S$2 million for each tug from the MPA.