Port of Singapore Incentivises Building of LNG-fuelled Vessels

| Singapore

Singapore LNG Ship Incentive graphic - 2015The Maritime and Port Authority of Singapore (MPA) has taken another step toward the eventual launch of the LNG Bunkering Pilot Programme (LBPP) targeted for early 2017. It has invited applications from interested companies to tap into a SGD 12 million (USD 8.4m) fund, from the MPA’s “Maritime Innovation & Technology Fund” (MINT Fund¹), for the building of LNG-fuelled vessels.

The MPA will provide funding of up to SGD 2 million (USD 1.4m) per vessel, capped at two successful funding applications per company.

Companies must be incorporated in Singapore, and the funded vessels must be flagged under the Singapore Registry or licensed for activity in Port of Singapore for a period of at least five (5) years.

MPA has been collaborating closely with partner agencies, industry stakeholders and technical experts, to develop LNG bunkering standards, procedures and infrastructures. On 28 July 2015, MPA announced its Request for Proposal (RFP) for interested parties to apply for the LNG bunker supplier licence that would allow the licencee to supply LNG bunkers to vessels in the Port of Singapore.

The expressed aim of the LBPP is to develop Singapore as a key LNG bunkering hub in Asia.  In 2014, Singapore’s bunker industry recorded more than 42 million tonnes in bunkers sales volumes, maintaining her position as the world’s top bunkering port.


¹ The MINT Fund encourages local and foreign companies with a local presence to undertake maritime-related R&D, using Singapore’s port and maritime facilities as the test-bed for their innovations. MINT Fund funds up to 50% of the project costs and is available to companies that are incorporated in Singapore, either owned by local or foreign shareholders (and subject to the provisions of the Companies Act (Cap.50)), and engaged in either R&D into or test-bedding in Singapore of new or better products, processes and applications relevant to the maritime industry.

(Source: Port of Singapore)

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