SINGAPORE - The Maritime and Port Authority of Singapore (MPA) has awarded $6 million of co-funding grants to FueLNG and Pavilion Gas to build two liquefied natural gas (LNG) bunker vessels, the regulatory agency announced on Monday (June 4).

FueLNG and Pavilion Gas will receive $3 million each for their vessels, which are slated for delivery in 2020.

The vessels will be among the first of their kind in Asia, and will be a "significant step towards cementing Singapore's position as a leading LNG bunkering hub in the Far East, catering to large ocean-going LNG-fuelled vessels", the MPA said.

Bunkering vessels carry fuel for ships. LNG bunker vessels are a relatively new and growing trend in the maritime sector as environmental policies spur a move towards cleaner fuels.

"As the world's largest bunkering hub, we are pleased to support the building of the first two LNG bunker supply vessels for the Port of Singapore," MPA chief executive Andrew Tan said in a statement.

"We look forward to the successful applicants contributing to the growth of ship-to-ship LNG bunkering in the Port of Singapore."