Keppel, Shell in Singapore LNG Bunkering JV

Keppel Corporation Limited and Shell will start LNG bunkering business in Singapore.

According to a statement by Keppel Corporation, its wholly owned subsidiary Keppel Offshore & Marine Ltd, entered into a shareholders agreement with Shell Eastern Petroleum (Pte.) Ltd., a wholly-owned subsidiary of Royal Dutch Shell plc, for the formation of a Singapore incorporated joint venture company.

The 50:50 joint venture will supply LNG bunkering operations services in Singapore to ships and any other marine vessels in the Singapore port and other related services.

Singapore is trying to promote LNG as marine fuel in order to encourage use of clean energy. Recently, the Maritime and Port Authority of Singapore (MPA) announced it will incentivise ships using LNG as part of Singapore’s longer term efforts to encourage LNG as a sustainable alternative fuel source.

From July 1, 2016 incentives will be offered under the Maritime Singapore Green Initiative (MSGI), launched by MPA in 2011. 

MPA said under the Green Port Programme (GPP), ships using LNG in the Port of Singapore will enjoy a flat rate of 25 percent concession in port dues. A similar incentive was being offered to ships using fuel with sulphur content not exceeding 1 percent. With effect from July 1, 2016, the sulphur oxides limit under the Green Port Programme (GPP) will be reduced further to 0.5 percent.

MPA also introduced the Green Energy Programme (GEP), which aims to promote adoption of alternate or cleaner marine fuels as well as wider adoption of energy efficient operational measures, in anticipation of developments on the global sulphur emissions cap.