Keppel Offshore & Marine (Keppel O&M) through its wholly-owned subsidiary, Keppel Singmarine, has secured a contract with Mitsui & Co (Asia Pacific) Pte Ltd (Mitsui AP) to build Singapore's first dual-fuel bunker tanker, to be owned and operated by Sinanju Tankers Holdings Pte Ltd (Sinanju), based on a finance agreement with Mitsui AP.
The tanker is scheduled for delivery in 2H 2019. As part of the contract, Sinanju and Mitsui AP have an option to order a second similar tanker to be exercised within six months from the effective date of the first contract.
Sinanju will receive co-funding of up to S$2 million to build the vessel as one of the recipients of the Maritime and Port Authority of Singapore (MPA) LNG bunkering pilot programme (LBPP).
Mr Abu Bakar, Managing Director (Gas & Specialised Vessels), Keppel O&M, said, "We are pleased to enter this partnership with Mitsui AP and Sinanju. The dual-fuel bunker tanker will be the third vessel to be built by Keppel Singmarine under the MPA LBPP and the seventh dual-fuel vessel built by Keppel O&M, extending our track record in LNG-fuelled vessels. With solutions across the LNG value chain, Keppel O&M is in a strong position to capture opportunities as the industry adopts greener solutions."
The 7,990 DWT dual-fuel bunker tanker will be the first LNG-fuelled bunkering vessel for Singapore and for Sinanju. Built to the requirements of classification society, Bureau Veritas, the bunker tanker will deliver marine fuels to ocean-going vessels within local port limits.
"Sinanju aims to kick start a green initiative for bunker tankers operating in Singapore; for our vessels to emit less air pollutants while boosting the local use of LNG as a bunker fuel. We will be in good stead when embarking in ship-to-ship LNG bunkering as our next milestone," said Mr Ju Kai Meng, Managing Director of Sinanju Tankers Holdings.
Mr Taku Morimoto, CEO of Mitsui AP, shared, "We are truly honoured and delighted to work with Sinanju and Keppel, reputable and leading companies in Singapore, for Singapore's very first dual-fuel bunker tanker project. Singapore, as the world largest bunkering hub is aiming to reduce greenhouse gas emissions by boosting the use of LNG as a marine fuel, and we, as a company serving the LNG industry for decades, would like to contribute further to Singapore's green initiative."
Keppel O&M has developed a suite of solutions across the LNG value chain. It recently delivered the world's first converted Floating Liquefaction (FLNG) vessel Hilli Episeyo, and is currently building two dual-fuel harbour tugs for Keppel Smit Towage and Maju Maritime, two dual-fuel LNG carriers for Stolt-Nielsen Gas B.V., and two dual-fuel containerships for Pasha Hawaii.
In addition, Keppel O&M is an active participant in promoting LNG as a marine fuel. Its joint venture with Shell Eastern Petroleum (Pte) Ltd, FueLNG, is a licensed LNG bunker supplier in Singapore providing safe truck and vessel bunkering solutions.
The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.
Source: Keppel