The Maritime and Port Authority of Singapore (MPA) has awarded a grant to FueLNG and Pavilion Gas to build two liquefied natural gas (LNG) bunker vessels.

The S$6m ($4.5m) grant will support ship-to-ship LNG bunkering in Singapore.

Both FueLNG and Pavilion Gas will each receive a co-funding grant of up to S$3m ($2.2m) for the construction of their respective vessels.

Scheduled to be delivered by 2020, the vessels will serve the large ocean-going LNG-fuelled vessels passing through the Port of Singapore.

The vessels will be among the first of their kind in Asia and are expected to strengthen Singapore’s position in the field of LNG bunkering in the Far East.

“The MPA grant boosts our plans to provide ship-to-ship bunkering in addition to truck-to-ship bunkering for ship owners.”

They will also enable ship operators to comply with the International Maritime Organization’s (IMO) new 0.5% global sulphur cap, which is due to be effective from 1 January 2020.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

FueLNG chairman Chris Ong said: “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.”

The newly announced fund is part of the S$12m ($9m) of additional funding provided by MPA in December to promote LNG bunkering in the Port of Singapore.

Around S$6m ($4.5m) of the total fund will be used to top up MPA’s existing co-funding programme to support the building of LNG-fuelled vessels.

Ship Technology Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Ship Technology Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now