Keppel Offshore & Marine’s subsidiary Keppel Shipyard and BG Group have jointly secured the licence to supply LNG to vessels in the Port of Singapore.
The licence is a result of a joint bid submitted to the Maritime and Port Authority of Singapore.
The companies will plan an equal partnership to deliver a complete bunkering solution by leveraging BG group’s LNG resource as well as Keppel’s expertise in handling and servicing LNG vessels.
The venture will add to BG’s existing market share in delivering LNG fuel at Singapore port.
Keppel offers repairing and offshore conversions of LNG bunkering vessels. In 2015, it had engineered a new design, the Gas Technology Development (GTD) to fortify its existence in the LNG market.
Port of Singapore’s plans to launch the LNG Bunkering Pilot Programme in 2017, is said to follow the recent awarding of licence to supply LNG fuel.
The process of ferrying fuel to ships for their own use is termed as bunkering and Singapore houses the largest bunkering port in the world.
Keppel O&M CEO Chow Yew Yuen said: "The move into LNG bunkering is in line with Keppel’s strategy to provide solutions for the global LNG market, and we are happy to partner BG Group in this exciting new venture.
"As the exclusive gas aggregator for Singapore, BG Group has the experience of importing LNG into Singapore where they already have a ready supply on Jurong Island.
"Together with Keppel’s years of experience and expertise in servicing vessels including gas carriers, we will be able to provide strong support to MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia.
"As the shipping industry’s demand for green solutions continues to rise, we will also be able to help meet the needs for sustainable shipping with our growing LNG solutions, such as tug designs with dual-fuel diesel LNG engines and the retrofitting of vessel engines to run on LNG."
Image: An LNG bunkering vessel. Photo: courtesy of BG Group.