CFA Society Singapore
SINGAPORE (June 5): Keppel Singmarine, a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured a contract from FueLNG to build Southeast Asia’s first Liquefied Natural Gas (LNG) bunkering vessel valued at approximately $50 million.
Scheduled for completion in 3Q20, the dual-fuel LNG bunkering vessel will have a capacity of 7,500 cu m.
The vessel will be built to the MTD 7500U LNG design, a proprietary design of Keppel O&M’s ship design and development arm, Marine Technology Development (MTD).
Its key features include high manoeuvrability which enables bunkering without tug assistance, as well as propulsion and power management systems that optimise fuel consumption.
Capable of running on both LNG and marine diesel oil, the LNG bunkering vessel boasts higher efficiency than conventional bunker vessels.
FueLNG, a joint venture between Keppel O&M and Shell Eastern Petroleum, will receive a grant of up to $3 million from the Maritime and Port Authority of Singapore (MPA) under its LNG Bunkering Pilot Programme (LBPP).
“We are pleased that FueLNG, Keppel and Shell are taking the lead in growing the LNG bunkering infrastructure in Singapore. As the world’s largest bunkering port, it is important that we support the development of LNG bunkering in our port to cater to future demand for LNG as a marine fuel,” says Andrew Tan, CEO of MPA.
“We are delighted to build FueLNG’s first LNG bunkering vessel, which comes on the back of other recently secured contracts for newbuild solutions along the gas value chain,” says Abu Bakar, Managing Director (Gas & Specialised Vessels), Keppel O&M.
“Keppel O&M is able to harness its expertise in newbuilds and LNG to provide customised solutions for clients, and is in a strong position to capture opportunities as the industry adopts greener solutions,” he adds.
Keppel Corp says the contract is not expected to have a material impact on its net tangible assets or earnings per share for the current financial year.
Shares of Keppel Corp closed 4 cents lower at $7.71 on Tuesday.