The Maritime and Port Authority of Singapore (MPA) has awarded two LNG bunker supplier licences to Pavilion Gas Pte Ltd and a joint proposal of Keppel Offshore & Marine and BG Group plc (BG Group – Keppel).
In response to MPA’s Request for Proposal (RFP), the two companies’ proposals have emerged as the proposals that best met criteria set up in the RFP. The RFP attracted 12 bids when it closed on 30 September 2015.
MPA will work with the two licence holders to develop the necessary infrastructure for them to begin supplying LNG bunker to vessels in the Port of Singapore by early 2017.
Chow Yew Yuen, Chief Executive Officer, Keppel Offshore & Marine, commented,
“We are happy to partner BG Group in this exciting new venture. We will leverage our years of experience and expertise in providing LNG solutions including gas carrier servicing to support MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia.”
Steve Hill, Executive Vice President, Global Energy Marketing and Shipping, BG Group, said,
“We are excited about the prospect of supplying LNG as a fuel for ships in Singapore. We look forward to working with Keppel Offshore & Marine on the safe and reliable supply of this cleaner fuel source and the on-going development of Singapore as a leading hub for LNG in Asia.”
“Pavilion Gas is delighted to be awarded the LNG bunker supplier licence. We will work closely with MPA and our partners to develop and test safety procedures and build relevant infrastructure to make LNG bunkering a reality in Singapore. It is exciting to see the growth of the LNG bunkering industry as it supports Singapore’s efforts to be an Asian LNG Hub,” said Pavilion Energy Group Chief Executive Officer, Mr Seah Moon Ming.
MPA is also working with stakeholders to develop LNG bunkering standards and procedures at both the national and international levels. MPA has also signed MOUs with the Port of Rotterdam, Antwerp Port Authority, and Port of Zeebrugge, to harmonise LNG bunkering standards and procedures.
In addition, MPA is funding up to S$12 million for the building of six LNG-fuelled vessels. To date, MPA has received a total of five applications which are being evaluated. MPA expects to announce the successful applicants by March 2016. MPA will also be engaging towage service providers in Singapore to consider switching to LNG as a fuel when they commission new tug boats.
“With growing international regulatory requirements and stricter standards for emissions, LNG is likely to be part of the fuel mix for global shipping as it becomes more cost-competitive and supply chain and infrastructures are developed,” said Mr Andrew Tan, Chief Executive of MPA.
“As the world’s largest bunkering hub, MPA is pleased to award the first two LNG bunker supplier licences to Pavilion Gas and BG Group – Keppel. This is the first step in Singapore’s efforts to become LNG bunker ready. We are also keen to work with other major ports and the shipping community to promote LNG bunkering as an alternative marine fuel.”
Source: MPA Singapore
