SINGAPORE (Sept 17): Keppel Offshore & Marine announced that its specialised shipbuilding arm, Keppel Singmarine, has delivered it second dual-fuel tug capable of running on liquefied natural gas (LNG).

The vessel was built for Maju Maritime, which is merged operationally with Keppel Smit Towage, and named Maju Loyalty.

In a media release issued on Monday, Keppel said that the vessel was completed on time, within budget and with a perfect safe record.

The dual-fuel tug is equipped with containerised, type-C ISO-certified LNG tanks on the main deck, as well as a patented LNG vaporiser which is compact and cost-effective. Re-fuelling of the LNG tanks can be done by truck to ship operations or replacing the empty tanks with replenished ones.

FueLNG, a joint venture between Keppel O&M and Shell Eastern Petroleum will be providing the LNG bunkering services for Maju Loyalty, while Shell will be supplying the LNG fuel.

To recap, this came on the back of the completion of South East Asia and Singapore’s first LNG-powered tug, KST Liberty, earlier in May this year also by Keppel O&M.

The Maritime and Port Authority of Singapore had provided co-funding of up to $2 million for each tug as part of its LNG Bunkering Pilot Programme (LBPP) grant.

Abu Bakar, managing director (gas & specialised vessels) of Keppel O&M says, “This is the second dual-fuel tug built by Keppel O&M, and furthers our track record in the design and construction of cost and energy efficient LNG-fuelled vessels. The award-winning tug design is part of a suite of solutions that Keppel O&M can provide as the industry increasingly adopts LNG as a marine fuel."

Romi Kaushal, managing director of Maju Maritime and Keppel Smit Towage adds, “This dual-fuel tug is a welcome addition to our fleet of tugboats as we look to do our part in reducing carbon dioxide & sulphur oxide emissions. It is a step in the right direction as the industry adjusts to the International Maritime Organisation's global cap of 0.5% on the sulphur content of marine fuel.”

Shares in Keppel Corp closed 9 cents lower at $6.46 on Monday.