Singapore’s strategic location at the crossroads of major shipping routes, coupled with its supportive policies, has played a pivotal role in catalysing the growth of LNG bunkering activities in the region
Situated along key maritime arteries, Singapore serves as a crucial hub for global trade, boasting a large transit traffic comprising a diverse array of vessels traversing its waters. This strategic positioning not only facilitates efficient logistics and connectivity but also renders Singapore an ideal location for the expansion of LNG bunkering operations.
Central to Singapore’s success as a leading LNG bunkering hub is the proactive role played by the Maritime and Port Authority of Singapore (MPA) and other government agencies. These entities have been instrumental in setting rigorous standards and regulations for LNG bunkering operations, ensuring adherence to the highest safety and environmental standards. Additionally, the government has provided initial impetus through grants, incentives, and attractive port dues schemes, incentivising industry players to invest in LNG bunkering infrastructure and technology.
Moreover, the government’s steadfast commitment to fostering innovation and sustainability has created an environment of encouragement and support, nurturing a vibrant ecosystem for LNG bunkering in Singapore. Through collaborative efforts with industry stakeholders and the provision of regulatory clarity, Singapore has cultivated a conducive environment for the growth of LNG bunkering, attracting investments and driving innovation in this burgeoning sector over the last decade, but it has not been an easy journey, as FueLNG general manager, Saunak Rai, explains.
Infrastructure
“When FueLNG started up in 2016,” he said, “Singapore lacked the necessary infrastructure for LNG bunkering, and there was a conspicuous absence of customers. To overcome these obstacles, FueLNG embarked on concerted efforts alongside its shareholders, Shell Singapore Pte. Ltd. and Seatrium Limited (formerly Keppel Offshore & Marine Ltd ), to lay the groundwork for LNG bunkering infrastructure ahead of clear market demand.”
Firstly, noted Mr Rai, it was imperative to establish some infrastructure. This encompassed a meticulous process of loading LNG from the Singapore LNG Corporation’s (SLNG) trucking bay, securing essential assets for safe and efficient LNG transfer to the port, and identifying suitable locations conducive to LNG bunkering operations.
Secondly, the formulation of robust procedures was paramount. Under the guidance of the MPA and in collaboration with various industry stakeholders, FueLNG contributed to the development of standards for LNG bunkering in Singapore, as outlined in the TR 56: Technical Recommendations for LNG bunkering in Singapore. Rigorous assessments such as HAZID (hazard identification studies) and HAZOP (hazard and operability studies), and risk assessments were conducted to ensure the safety and reliability of LNG bunkering operations.
Lastly, FueLNG ordered its first LNG bunkering vessel, FueLNG Bellina, even before it had firm bunkering demand to back up the investment. “We believe that the steps we took to offer LNG bunkering in Singapore played a part in catalysing demand for it,” said Mr Rai.
The first ship-to-ship bunkering in March 2021 via FueLNG Bellina was a critical milestone in Singapore, which involved MPA, CMA CGM (the receiving ship) and many other local stakeholders. The occasion not only demonstrated that LNG bunkering in Singapore was possible and safe, but it also established FueLNG as a pioneering force in the region.
FueLNG has recently added FueLNG Venosa to its portfolio, which Mr Rai believes will add impetus to Singapore as an LNG bunkering hub. “Singapore is the world’s biggest bunkering port and due to its unique geographic location, infrastructure availability, transit traffic, and efficiency, has the biggest opportunity in the region to become a global hub for LNG bunkering,” he said. “FueLNG Venosa with its unique characteristics and size, brings in numerous advantages and economies of scale and is already playing a huge part in the acceleration of delivery of LNG bunkers. Our present focus remains on Singapore, as we foresee a strong demand growth here.”
While providing the right tools is a key focus of FueLNG, Mr Rai acknowledged the key factors driving collaboration with stakeholders and customers. “In the LNG bunkering sector, collaboration with stakeholders and customers is not merely advantageous but imperative for several reasons,” he said.
“Firstly, the complexity and scale of LNG bunkering operations necessitate a multifaceted approach, involving various entities ranging from regulatory bodies to industry players and end users. By forging strong alliances with stakeholders across the value chain, FueLNG has been able to leverage their expertise, resources, and networks to navigate regulatory frameworks, address technical challenges, and ensure compliance with safety standards.”
Mr Rai added that customer collaboration is indispensable for understanding their needs, preferences, evolving trends and by engaging with potential LNG bunkering customers very early – at the design stage of customer’s LNG fuelled vessels. “FueLNG is able to tailor our services to meet specific requirements, carry out detailed compatibility studies and risk assessments, offer innovative solutions, and establish long-term partnerships based on trust and mutual benefit.” This is part of the company’s strategy: “This customer-centric approach not only enhances satisfaction but also fosters loyalty and encourages repeat business, thus driving sustained growth and competitiveness in the industry,” he said.
Partnerships
In Singapore, these partnerships with stakeholders and customers contribute significantly to operational efficiency and safety in the LNG bunkering sector. The issuance and continuous update of TR 56 standards for LNG bunkering in Singapore is the biggest testament to this same. By pooling resources, sharing best practices, and co-ordinating activities, bunkering companies have been able to streamline processes, optimise workflows, and minimise operational disruptions. This collaborative approach not only reduces costs but also enhances safety, reliability, scalability, and resilience, thereby ensuring uninterrupted supply chains and maximising uptime.
Considering the diverse range of vessels FueLNG caters to, including ultra-large container vessels and smaller LNG-powered vessels, how does FueLNG ensure flexibility in meeting their specific requirements while maintaining safety standards?
“FueLNG ensures flexibility in meeting the specific requirements of diverse vessels while upholding stringent safety standards through its three-pronged approach,” said Mr Rai. The first level is an emphasis on the LNG bunker vessel design. The company has been able to draw from a wealth of experience in conventional LNG operations and leveraging insights from Shell’s global LNG bunkering endeavours, FueLNG believes it has meticulously crafted LNG bunker vessels (LBVs) that epitomise flexibility and versatility. These vessels are engineered to accommodate a wide spectrum of vessel types, ranging from ultra-large container vessels to smaller LNG-powered vessels with the capability to adapt seamlessly to varying requirements, ensuring optimal efficiency and performance across diverse maritime scenarios.
“The government’s steadfast commitment to fostering innovation and sustainability has created an environment of encouragement and support”
Secondly, noted Mr Rai, FueLNG adopts an early engagement strategy with its customers. By initiating dialogue at the earliest stages of project development, FueLNG collaborates closely with its customers to understand their unique needs and preferences. This proactive approach enables FueLNG to provide invaluable guidance and support in the design and configuration of LNG bunkering manifolds and equipment, thereby ensuring maximum compatibility and interoperability with FueLNG’s infrastructure. Through early engagement, FueLNG fosters a collaborative environment where customer input is incorporated into the planning process, leading to tailor-made solutions that meet the specific requirements of each vessel type.
Compatibility
“Lastly, FueLNG implements a rigorous procedure for compatibility assessment and operational walkthroughs,” he said. This structured approach involves meticulous planning and risk assessment to identify and address potential challenges well in advance of LNG bunkering operations. By conducting comprehensive compatibility assessments and operational walkthroughs, FueLNG proactively identifies any compatibility issues or operational risks, allowing for timely mitigation measures to be implemented. He added: “This proactive risk management approach ensures that LNG bunkering operations are executed flawlessly, with safety as the foremost priority.”
Trends
In 2023, Gastech was held in Singapore, and in 2024 it will take place in Houston (LNG Shipping & Terminals will be there), by Gastech 2028 it will have swung back to Singapore. What technological advancements or industry trends are anticipated could further enhance the role of LNG as a marine fuel and FueLNG’s position in the market?
“We look forward to seeing technological breakthroughs aimed at minimising environmental impact throughout the LNG value chain,” he said. He listed the anticipated advancements would substantially mitigate fugitive emissions from LNG production upstream and curb methane slip from LNG-fuelled ships. These would offer an even more robust solution aligned with the maritime industry’s net-zero aspirations by 2050. From a bunkering operations point-of-view, Mr Rai expected technological innovations would enhance operational efficiency and safety across LNG bunkering operations.
He was looking forward to optimised vessel designs to state-of-the-art bunkering infrastructure, while advancements in technology will streamline processes, reduce turnaround times, and ensure adherence to the highest safety standards. What is certain is that unless things radically change for the worse, Singapore will continue to offer a conducive environment for seamless bunkering operations, ensuring reliability, efficiency, and safety for all bunker vessels from established vessels like FueLNG Bellina and FueLNG Venosa to newcomers like Brassavola which has been successfully deployed by Pavilion Energy.
In February 2024, Brassavola completed a maiden ship-to-ship (STS) LNG bunkering operation, delivering 1970 metric tonnes of LNG to Rio Tinto chartered dual-fuelled bulk carrier Mount Api.
The Singapore Seatrium-built Brassavola is equipped with dual-fuel engines, and is also the nation’s first membrane containment LNG bunker vessel and has a loading and bunkering rate of up to 2,000m³ per hour.
Pavilion Energy division head of Singapore Hub, Mr Malcolm Lim, said: "The steady developments of our LNG bunkering solutions from truck operations to our STS LNG bunkering activities today is a testament of the strong operational expertise of our team. Brassavola will play a key role in our efforts to promote environmental stewardship. Already, we are seeing a healthy demand from customers to deploy the vessel, signalling the significance and continued viability of LNG as a transition marine fuel. We value the trust that Rio Tinto has placed in us on Brassavola’s maiden LNG bunkering operation to support their decarbonisation ambitions.”
That said, there is some question marks regarding the continuing shareholder structure of Pavilion Energy. As LNG Shipping & Terminals went to press, plans are reported to be well-advanced to sell some US$2Bn of Pavilion Energy assets, with due diligence having been completed, according to news sources in Singapore.
Shell and Saudi Aramco have been named as the buyers in the hunt for Pavilion Energy, but no statements have been released from any of the parties involved. Both energy majors have significant investments in LNG, which would be boosted by Pavilion Energy’s access to the Singapore markets.
Singapore shipyard completes air lubrication system retrofit
Silverstream Technologies has announced another retrofit of its air lubrication technology aboard a large LNG carrier at Seatrium’s Admiralty Yard in Singapore.
Singapore’s Seatrium shipyard – the successor yard as a result of the merger between Sembcorp Marine and Keppel Offshore & Marine – is a signed co-operation partner of Silverstream.
The retrofit was completed on a 174,000-m3 LNG carrier owned by an oil major in about 30 days. Neither the vessel nor the oil major was named.
The Silverstream system releases a carpet of air to reduce the frictional resistance between the hull and the water, reducing average net fuel consumption and greenhouse gas emissions by 5-10%. Silverstream said the LNG carrier retrofit installation in Singapore was the 11th Silverstream system the company has delivered worldwide.
Seatrium is one of Singapore’s most important players in repair and upgrade for all types of vessels with its Repairs and Upgrades unit recently clinching a series of major new contracts with an aggregate value of S$350M (US$260M), with works scheduled through the end of 2025.
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