MPA introduces LNG fuelling incentive

Thursday, 29 July 2021
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Singapore’s Maritime and Port Authority (MPA) has implemented new measures to support LNG fuelling, reducing port dues for qualifying vessels.

The authority has changed its harbour craft port dues to provide a discount for floating storage units (FSUs) and floating storage regassification units (FSRUs) that support LNG refuelling activities or related infrastructure on the island.

“The MPA has introduced a new harbour craft port dues concession to support the deployment of FSUs/ FSRUs in Singapore for LNG bunkering and breakbulk activities,” a spokesperson for the authority said.

50% discount

Under the new concession terms, the authority will offer a 50% discount on harbour craft port dues, up to S$600,000 annually per craft, for a period of five consecutive years.

“The company operating the FSU/FSRU will be required to provide an undertaking to MPA that the FSU/FSRU 2 would support LNG bunkering activities or LNG bunkering and breakbulk activities, with an estimate of such volumes over a 5-year consecutive period,” the MPA adds.

To gain the discount, the FSU or FSRU must be licensed as harbour craft and Singapore-flagged and must be deployed at a berth approved by the Port Master and not at anchorage. The vessel will not be allowed to leave the Port of Singapore during the five-year period without approval by the Port Master.

Bunker capacity growth

The MPA has been active in increase LNG bunkering capacity in Singapore this year, awarding a third LNG bunker supplier licence to Total Marine Fuels in February.

The authority notes that the island’s first LNG bunker tanker, FueLNG Bellina, began bunkering tankers in April and that since March it has been conducting regular ship-to-ship LNG bunkering operations, with simultaneous cargo operations, for ocean-going LNG-fuelled container vessels.

The license signed with Total is part of a wider relationship between the French energy major and Singapore and follows a 10-year agreement signed between Total and state-owned Pavilion Energy to develop an LNG bunker supply chain in the port of Singapore. 

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