Oil & Gas

FueLNG bunkering vessel to be operational by year end

FueLNG bunkering vessel in Singapore is expected to become operational by the end of this year. It would provide ship-to-ship bunkering services in port. FueLNG is a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum. The 7,500 cubic metres vessel is to arrive in Singapore later this year from Keppel’s shipyard in China.

The ship’s first contracts will be to provide ship-to-ship LNG bunkering to Shell-chartered tankers and for one of German container shipping line Hapag-Lloyd’s container vessels, the JV partners. “It is our next step towards regular ship-to-ship LNG bunkering activities in Singapore. As we progress towards a low-carbon future, we will intensify our efforts to develop the Port of Singapore into a global LNG bunkering hub.” said Chee Hong Tat, Singapore’s senior Minister of State for the Ministry of Transport.

The shipping industry has been under pressure to reduce carbon emissions, after also introducing new rules this year to cut the sulphur content in marine fuels, also known as bunker fuels. This in turn is prompting demand from tanker operators and cruise liners for LNG as a bunker fuel.

Singapore, the world’s largest marine refuelling, or bunkering, hub has been expanding its LNG infrastructure by increasing storage capacity and also adding the capability to break up big cargoes into smaller ones. Keppel, Shell and FueLNG Keppel are also setting up a dedicated LNG bunkering facility, which is expected to be operational by end of next year, and will be the first in Singapore.

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