Keppel-Shell JV wraps first commercial LNG bunkering operation

A JOINT venture (JV) between a subsidiary of Keppel Offshore & Marine (Keppel O&M) and a unit of super major Shell has completed its first commercial transfer of liquefied natural gas (LNG) bunker or delivery of LNG as marine fuel.

The JV, FueLNG, carried out the truck-to-ship transfer of LNG bunker in batches for the floating liquefied natural gas vessel Hilli Episeyo, from July 22 to Sept 22.

This also marks FueLNG's first LNG trucking operation following the facilitation of Singapore LNG's gas-up or cool-down and reload operation at its Jurong Island terminal of Shell's LNG bunker vessel, Cardissa, in June 2017.

FueLNG is a JV between Keppel O&M's subsidiary Gas Technology Development Pte Ltd and Shell Eastern Petroleum Ltd.

The two JV partners were awarded one of two LNG bunkering licences by the Maritime and Port Authority of Singapore (MPA) in January 2016.

FueLNG has secured contracts from Keppel Smit Towage to provide LNG bunkering services for two dual-fuel LNG harbour tugs. These contracts will commence in 2018 when the construction of the tugs is completed.

MPA has awarded the second LNG bunker licence to Temasek-backed Pavilion Energy.

Pavilion Energy undertook in May its first LNG bunkering operation.

The completion of the pilot LNG bunkering operations affirm Singapore's commitment to promote green shipping and by embracing LNG, a cleaner fossil-based burning fuel.

Singapore is taking the lead to embrace LNG bunkering ahead of the IMO (International Maritime Organization) global sulphur cap, which limits sulphur content in ship fuels to 0.5 per cent.

Fuelling ships with LNG is one option on the table for shipowners to comply with the global sulphur cap.