Singapore’s MPA no longer offering LNG bunkering incentive

The Maritime and Port Authority of Singapore (MPA) is no longer offering a 50 percent harbor craft port dues concession which it launched in 2021 to support LNG bunkering in the port.

Qualifying vessels included floating storage units (FSUs) and floating storage and regasification units (FSRUs).

“With adequate capacity for LNG bunkering, MPA will discontinue the 50 percent harbour craft port dues concession for FSUs/FSRUs supporting LNG bunkering and breakbulk activities in port with immediate effect,” it said in a circular on February 6.

MPA said it had been working with the shipping community to build up the LNG ecosystem in Singapore to expand storage capacity and supply for LNG bunkering.

This included grants for the construction of LNG-fueled harbor craft and LNG bunkering vessels.

The delivery of Singapore’s first LNG bunker vessel, FueLNG Bellina, in March 2021, has enabled ship-to-ship LNG bunkering to take place in port.

Also, the expected commencement of operations of Singapore’s second LNG bunkering
vessel later this year would further boost Singapore’s LNG bunkering capacity, the port authority said in the circular.

Singapore’s Sembcorp Marine held a naming ceremony in October last year for MOL’s LNG bunkering vessel that will serve Pavilion Energy and TotalEnergies in the port of Singapore.

Brassavola will join Singapore’s first LNG bunkering vessel, the 7,500-cbm FueLNG Bellina, owned by Keppel Offshore & Marine and Shell.

FueLNG is also expecting to take delivery of its second bunkering vessel in the second quarter of 2023.

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