Keppel O&M to build South East Asia's first LNG bunkering vessel

To be built by Keppel O&M, South East Asia's first LNG bunkering vessel will provide LNG to global customers who pass through the Port of Singapore To be built by Keppel O&M, South East Asia's first LNG bunkering vessel will provide LNG to global customers who pass through the Port of Singapore

JUNE 6, 2018 — FueLNG, a joint venture between Keppel Offshore & Marine Ltd and Shell Eastern Petroleum (Pte) Ltd, has placed an order with Keppel Singmarine Pte Ltd, a subsidiary of Keppel O&M, to build what will be the first Liquefied Natural Gas (LNG) bunkering vessel in South East Asia.

The 7,500 cu.m LNG vessel will be built to the proprietary design, MTD 7500U LNG, developed by Keppel O&M's ship design and development arm, Marine Technology Development (MTD), for cleaner and safer bunkering activities within the Port of Singapore.

Equipped with dual-fuel generator engines, the LNG bunkering vessel is able to harness boil-off gas, a by-product of bunkering operations as well as the continuously evaporating LNG in the cryogenic tank, which would otherwise be flared off. It is also designed with a barge-like extended flat surface to provide bunkers to a wide range of vessels.

A twin screw azimuthing propulsion system allows crabbing maneuvers during bunkering operations, minimizing tug utilization and in turn reduces fuel consumption and emissions.

The construction of the bunkering vessel is projected to be completed by the shipyard in third quarter 2020 and will enable FueLNG to be the first in Singapore to provide ship-to-ship LNG bunkering services. FueLNG will receive a grant of up to $3 million as part of the Maritime and Port Authority of Singapore's (MPA) LNG Bunkering Pilot Program (LBPP).

Mr. Chris Ong, Chairman, FueLNG and CEO, Keppel O&M, said, "This vessel, which will be the first of its kind in South East Asia, will enable FueLNG to be the first in Singapore to provide ship-to-ship LNG bunkering services within the Singapore port. This demonstrates our commitment to global customers as the industry increasingly adopts cleaner fuel alternatives. Tapping on Keppel's shipbuilding expertise enables us to have a highly capable vessel that meets our requirements for safety and efficiency. Supported by Shell's experience, we aim to be a key driver in promoting LNG as marine fuel."

Mr. Lauran Wetemans, Director, FueLNG and General Manager, Shell Downstream LNG, added, "I am pleased LNG will be available mid 2020 in Singapore. The decision to develop the LNG Bunker vessel demonstrates the confidence FueLNG has in LNG as a marine fuel. Singapore is a key maritime hub and both partners will contribute specific expertise in the venture with Shell using its global experience to make LNG a reality. We continue to work closely with the MPA, the port operators and industry stakeholders to ensure LNG bunkering will be available."

Mr. Andrew Tan, CEO of MPA, said, "We are pleased that FueLNG, Keppel and Shell are taking the lead in growing the LNG bunkering infrastructure in Singapore. As the world's largest bunkering port, it is important that we support the development of LNG bunkering in our port to cater to future demand for LNG as a marine fuel."

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