Keppel Corp and Shell have formed a joint venture to provide LNG bunkering services in Singapore, as the Maritime and Ports Authority (MPA) extends its green shipping incentive to LNG fuelled vessels.
The two companies will be equal shareholders in the new venture, which will have a principal business supplying LNG bunkering operations services in Singapore to ships and any other marine vessels in the Singapore port, as well as related services.
The formation of the joint venture follows the award of the first two LNG bunkering contracts for Singapore by MPA in January. Keppel and Shell-owned BG Group secured one contract, with the other going to local energy group Pavilion Gas. LNG bunkering is to begin in early 2017.
In related news, MPA revealed the extension of its Green Ship Programme (GSP) – offering reductions in initial registration and annual tonnage tax - and Green Port Programme (GPP), offering a discount on port dues, to ships using LNG as fuel.
A further project, the Green Energy Programme, aims to promote adoption of cleaner marine fuels and energy efficient operational measures ahead of the global sulphur emissions cap. MPA said the project could include support in asset and infrastructural development. To date the authority has committed S$12 million to an LNG pilot programme.
Shell already has LNG bunkering operations in Europe (the UK and Rotterdam) and the Americas, and views Asia Pacific as the third phase of its development of a global LNG bunkering network. Keppel has developed expertise in storage, liquefaction and regasification of LNG, as well as the design of gas carriers ranging from 3,000m3 to 30,000m3, bunker vessels and power barges.