Singapore's Keppel Partners with Shell on LNG Bunkering Business

Maritime and Port Authority of Singapore (MPA) has awarded its first licences for liquefied natural gas (LNG) bunkering, the new gas fuel suppliers say they are looking forward to developing the world's biggest bunkering port into Asia's LNG bunkering hub.

"We will leverage our years of experience and expertise in providing LNG solutions including gas carrier servicing to support MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia," said Chow Yew Yuen, Chief Executive Officer, Keppel Offshore & Marine.

Keppel Offshore & Marine and BG Group plc's joint proposal was one of two bids accepted by MPA, with the other going to Pavilion Energy Group.

"We will work closely with MPA and our partners to develop and test safety procedures and build relevant infrastructure to make LNG bunkering a reality in Singapore," said Pavilion Energy Group Chief Executive Officer Mr Seah Moon Ming.

"It is exciting to see the growth of the LNG bunkering industry as it supports Singapore's efforts to be an Asian LNG Hub."

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

MPA is also working with stakeholders to develop LNG bunkering standards and procedures at the national and international levels, having signed MOUs with the Port of Rotterdam, Antwerp Port Authority, and Port of Zeebrugge, to harmonise LNG bunkering standards and procedures.

Keppel Corporation Limited (KCL) Thursday announced that KS Investments Pte Ltd (Keppel) has signed a shareholders agreement with Shell Eastern Petroleum (Pte.) Ltd. (Shell) to develop a liquefied natural gas (LNG) bunkering business in Singapore.

KCL says the business will see the supply of LNG bunkering services to vessels in the Singapore port, as well as other related services.

Keppel and Shell have agreed to split the business' shares 50-50, notes KCL, adding that the transaction will have no material impact on KCL's net tangible assets and earnings per share during the financial year ending December 31, 2016.

In February, Ship & Bunker reported that Chow Yew Yuen, CEO of Keppel Offshore & Marine, had said: "we will leverage our years of experience and expertise in providing LNG solutions including gas carrier servicing to support MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia."