By MarEx 2015-09-16 14:16:00
Singapore is already the maritime industry’s largest fuel bunkering hub, but it is now strategically positioning itself to become a leading LNG trading center as well. Pavilion Energy, which is state owned, said that it will be providing LNG bunkering services in Singapore.
The small-scale LNG market is gaining momentum in Southeast Asia as it is a cost-effective solution for transporting natural gas to users, which are not connected to pipeline grids or in remote locations. Small-scale LNG tanker solutions can cut capital expenditure investment down by about 25 percent compared to conventional methods.
While, there are no LNG-fueled vessels in Southeast Asia, Pavilion said that by establishing LNG bunkering services it will encourage regional and international operators to use LNG-powered vessels. Singapore sells over 42 million metric tons of bunker fuel each year to vessels calling the port.
The Maritime and Port Authority of Singapore (MPA) began soliciting Requests for Proposal (RFP) for LNG bunkering licenses in late July with a September 30th deadline for submission. Approved applicants can begin LNG bunkering services as early as January 2017.