Singapore : The developmemt of liquefied natural gas (LNG) bunkering in the Port of Singapore got a boost with the signing of a deal between Total and Pavilion Energy to provide a bunkering vessel and for an LNG supply arrangement.
The Heads of Agreement (HoA), through their respective units Total Marine Fuels Global Solutions and Pavilion Gas, to jointly develop a bunker supply chain in the port covers the shared long-term time charter of a new generation LNG bunker vessel (LNGBV) to be commissioned by Pavilion Gas by 2020 and also includes an LNG supply arrangement between the two companies enabling Total to deliver LNG bunker to its customers, Total said in a press release.
The HoA, signed on the sidelines of the World Gas Conference 2018, follows a Memorandum of Understanding (MoU) concluded by both companies in April 2017 on LNG bunkering cooperation in Singapore. The HoA is a significant step forward and contributes to the development of Singapore as an LNG bunkering hub.
The move toward LNG as a bunker fuel is a suitable solution following the decision of the International Maritime Organization (IMO) to set limits on sulphur content in marine fuels from 2020. LNG bunker not only produces zero sulphur oxides, but it also represents an available and competitive solution, which contributes to IMO’s long-term strategy on the reduction of greenhouse gas emissions from ships announced in April 2018.
