MPA dishes out S$26m to promote LNG use as marine fuel

AHEAD of the implementation of a green shipping regulation, the Maritime and Port Authority of Singapore (MPA) has spent S$26 million to kick-start the use of liquefied natural gas (LNG) as a cleaner burning marine fuel.

The MPA's deputy director for port services, Alan Lim, disclosed the up-to-date investment made by the maritime regulator at an industry roundtable held on Monday.

This includes S$18 million or up to S$2 million per ship awarded as grants to shipowners for building LNG-powered ships plus another S$6 million that went to two licensed suppliers for the construction of LNG bunkering vessels.

The MPA has spent a further S$2 million to build LNG trucking capabilities at the SLNG terminal.

LNG, which emits almost zero sulphur dioxide, is touted as a bridging fossil fuel allowing for international shipping to comply with an upcoming green shipping regulation.

By 2020, the International Maritime Organization will enforce a 0.5 per cent cap on sulphur content in marine fuel. This is intended to cut the emission of sulphur dioxide, a harmful greenhouse gas, from ship operations.