LNG Bunkering – Singapore Sets Up Joint Industry Project

Press Release
Friday, April 13, 2012

Maritime & Port Authority of Singapore (MPA) considers operational feasibility of LNG bunkering

A Joint Industry Project (JIP), co-funded through MPA’s MINT fund, is aimed to provide recommendations to the Singapore government authorities on enabling LNG bunkering in Singapore, ensuring operational safety, alignment with industry expectations and best practice, and compliance with relevant international rules, regulations and standards.

LNG bunkering is a process of refuelling ships by transferring LNG fuel from the LNG carrying trucks, barges or onshore tanks. Switching from conventional marine fuel to LNG fuel provides both environmental and economic benefits to shipowners and public.

However, the most common key barriers to a more widespread adoption of LNG as a fuel for ships seem to be insufficient local LNG supply and immature bunkering infrastructure coupled with a lack of regulatory schemes for both shore-based and ship-to ship bunkering. The feasibility of LNG fuelled shipping also depends on the simultaneous development of the entire value chain; the lack of such concurrent evolution would be a major challenge and increase investment risk for each stakeholder.

The JIP represents a platform where a consortium of industry players collaborates with each other to share knowledge on the topic and indentify and recommend solutions to the issues faced by the sector. This JIP is project managed by DNV and co-sponsored by the MPA, and 21 industry partners includes BG Group, DNV Petroleum Services, Energy Markets Authority, Fearnleys, Gas Supply Pte Ltd, Hong Lam Marine, I.M Skaugen, IHI Corporation, Innovation Norway, Keppel Offshore & Marine Technology Centre, Land Transport Authority, Maritime and Port Authority, Mitsui & Co., Ltd., Norgas (Asia), NYK Line, Rolls Royce Marine, Shell, Singapore LNG Corporation Pte Ltd, SPT Marine Services Ltd. and Star Cruises.

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