MPA awards first LNG bunkering licenses

SINGAPORE - Pavilion Gas and a joint bid between Keppel Offshore & Marine (Keppel O&M) and BG Group have been awarded licences for liquefied natural gas (LNG) bunkering here, announced the Maritime and Port Authority of Singapore (MPA) on Wednesday.

The two proposals emerged among 12 bids as those that best met criteria in a request for proposal, which closed on Sept 30 last year, said the MPA.

MPA will work with the two licence holders to develop the necessary infrastructure for them to begin supplying LNG bunker to vessels in the Port of Singapore by early 2017.

Singapore, the largest bunkering port in the world, looks set to be one of the first few countries to go into LNG bunkering.

"With growing international regulatory requirements and stricter standards for emissions, LNG is likely to be part of the fuel mix for global shipping as it becomes more cost-competitive and supply chain and infrastructures are developed," said Mr Andrew Tan, MPA chief executive.

"As the world's largest bunkering hub, MPA is pleased to award the first two LNG bunker supplier licences to Pavilion Gas and BG Group-Keppel.

"This is the first step in Singapore's efforts to become LNG bunker ready. We are also keen to work with other major ports and the shipping community to promote LNG bunkering as an alternative marine fuel."