Keppel-Shell joint venture completes the first commercial LNG bunker transfer in Singapore

Keppel O&M and Shell Eastern said their joint venture FueLNG carried out truck-to-ship bunkering for the floating liquefaction vessel Hilli Episeyo (pictured). PHOTO: KEPPEL

SINGAPORE - A joint venture between a unit of Keppel Offshore & Marine (Keppel O&M) and Shell Eastern Petroleum has completed the first commercial Liquefied Natural Gas (LNG) bunker transfer in Singapore.

The two parties said in a statement on Monday that their joint venture FueLNG carried out truck-to-ship bunkering for the floating liquefaction vessel, Hilli Episeyo. This was done in batches from July 22 to September 23.

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

Both Keppel O&M's subsidiary Gas Technology Development and Shell Eastern Petroleum, which are behind the joint venture, were awarded one of two LNG bunkering licences by the Maritime and Port Authority of Singapore (MPA) in January 2016.

FueLNG chairman Michael Chia said: " The development of proven LNG bunkering infrastructure will give confidence to the industry that LNG can be widely adopted as a marine fuel and is sustainable for the long-term."

FueLNG has also secured contracts from Keppel Smit Towage and Maju Maritime to provide LNG bunkering services for two dual-fuel LNG harbour tugs. These contracts will commence next year, when construction of the tugs is completed.

To promote Singapo-ready port, the MPA commenced its LNG bunkering pilot programme early this year. Under the programme, the MPA has provided various companies with grants of up to S$2 million per LNG-powered vessel constructed.

Global industry players are set to pursue greener and more sustainable solutions with the implementation of environmental regulations such as the International Maritime Organisation's new 0.5 per cent global sulphur cap on fuel content, which will kick in from January 2020.

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