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Keppel O&M unit to build LNG bunkering vessel

The Straits Times

Keppel Singmarine has secured a contract worth $50 million to build South-east Asia's first liquefied natural gas (LNG) bunkering vessel.

The subsidiary of Keppel Offshore & Marine (Keppel O&M) won the new building award from FueLNG, a joint venture between Shell Eastern Petroleum and Keppel O&M.

Keppel Singmarine expects to complete construction on the dual-fuel LNG bunkering vessel in the third quarter of 2020. The vessel will be built to a proprietary design of Keppel O&M's ship design and development arm, Marine Technology Development, for greener and safer bunkering activities within the Singapore port. It will have a capacity of 7,500 cubic m.

This shipbuilding contract for Keppel Singmarine was announced one day after the Maritime and Port Authority of Singapore unveiled the award of co-funding grants valued at $3 million each to FueLNG and Pavilion Gas to defray the construction costs of two LNG bunkering vessels.

FueLNG and Pavilion Gas are licensed suppliers of LNG as marine fuel. The construction of this pair of vessels represents a significant step towards building ship-to-ship transfer capabilities needed to service ocean-going ships out of Singapore.

Mr Chris Ong, chairman of FueLNG and chief executive of Keppel O&M, said: "Tapping Keppel's shipbuilding expertise enables us to have a highly capable vessel that meets our requirements for safety and efficiency.

"Supported by Shell's experience, we aim to be a key driver in promoting LNG as marine fuel."

Keppel Singmarine expects to complete construction on the dual-fuel LNG bunkering vessel in the third quarter of 2020. The vessel will be built to a proprietary design of Keppel O&M's ship design and development arm, Marine Technology Development, for greener and safer bunkering activities within the Singapore port. It will have a capacity of 7,500 cubic m.

FueLNG's award of the shipbuilding contract yesterday to Keppel O&M came on the back of a series of other projects the yard group has won and delivered.