LNG Bunkering: Singapore's Plans, Joint Ventures, and Expansion
Joint Ventures and Investments
Keppel Offshore Marine (Keppel OM) and Shell Eastern Petroleum Pte Ltd have formed a joint venture called WEB FueLNG to provide LNG bunkering services. Additionally, Seatrium Offshore Marine Ltd and Shell Singapore Pte Ltd have established a similar joint venture, also called WEB FueLNG, for the same purpose.
Singapore-based Pavilion Energy has conducted the first commercial ship-to-ship LNG bunkering operation.
Expanding LNG Bunkering Capabilities
Singapore aims to expand its LNG bunkering capabilities to meet the growing demand for cleaner marine fuels.
The market share of high-sulfur fuel oil (HSFO) for bunkering has increased from 29% in 2022 to 32% in 2023, indicating a shift towards cleaner alternatives such as LNG.
Singapore's Position as a Global Bunkering Hub
Singapore is currently the world's largest bunkering hub and intends to maintain its position by enhancing its LNG bunkering facilities.
The country's strategic location and well-developed infrastructure make it an ideal hub for LNG bunkering.
Benefits of LNG Bunkering
- Reduced air pollution and emissions
- Improved sustainability and environmental compliance
- Cost savings compared to traditional marine fuels
Conclusion
Singapore's investment in LNG bunkering, through joint ventures and infrastructure expansion, is a testament to its commitment to becoming a global leader in sustainable marine fuel supply.
The country's strategic location and existing bunkering hub status position it well to meet the growing demand for LNG as a cleaner and more efficient marine fuel option.
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