Singapore’s Keppel Corporation said Thursday it has entered into an agreement with Royal Dutch Shell to form a joint venture company, which will establish a liquefied natural gas bunkering business in Singapore.
Keppel and Shell will each hold a 50% stake in the new company.
The joint venture’s principal business activities will be to supply LNG bunkering operations services in Singapore to ships and any other marine vessels in the Singapore port and other related services.
The joint venture is the latest in Shell’s push to establish as LNG as a viable marine fuel.
In February, Qatargas and Royal Dutch Shell signed a memorandum of understanding to develop LNG bunker fuel for use by the world’s largest container shipping company, Maersk Line. In April, United Arab Shipping signed a similar agreement with Shell and Qatargas aimed at exploring the development of LNG as a marine fuel in the Middle East region.
The deal also comes as Singapore seeks to cement its position as the leading LNG bunkering hub in Asia. Last September, the Port of Singapore launched a LNG Bunkering Pilot Programme (LBPP) targeted for early 2017, as well as a $8.4 million fund for the building of LNG-fueled vessels.
In January, BG Group and Keppel Offshore & Marine, a unit of Keppel Corp., secured a license to supply LNG bunkers to vessels in the Singapore. With the license, BG Group and Keppel would form a 50-50 joint venture to deliver an end-to-end bunkering solution using LNG sourced from BG Group’s LNG portfolio