Tanker Rates Skyrocket To Fill Colonial Pipeline Shortages
By Elizabeth Low (Bloomberg) Oil tanker charter rates skyrocketed in the U.S. with refiners scrambling for ships to store fuel that has nowhere to go due to a cyberattack on...
Singapore shipbuilder Keppel Offshore & Marine has announced that a subsidiary has secured a contract to build Singapore’s first dual-fuel bunker tanker to be powered by liquefied natural gas.
A contract for the vessel was signed between Keppel O&M’s wholly-owned subsidiary Keppel Singmarine and Mitsui & Co (Asia Pacific) with partial funding from the Singapore government. The tanker will be owned by Sinanju Tankers, based on a finance agreement with Mitsui AP.
The tanker is scheduled for delivery in the second half of 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.
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 will receive funding of up to S$2 million (about $1.5 million USD) to build the vessel through the Maritime and Port Authority of Singapore (MPA) LNG bunkering pilot programme (LBPP).
Abu Bakar, Managing Director (Gas & Specialised Vessels) at 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.”
“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.
Taku Morimoto, CEO of Mitsui AP, commented, “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.”
Join the 68,552 members that receive our newsletter.
Have a news tip? Let us know.