MARINE NEWS

MARINE NEWS Singapore LNG Bunkering facilities from 2015: The Maritime and Port Authority of Singapore has just announced to the world that it would be providing liquefied natural gas (LNG) as a form of marine fuel beginning the year 2015. This was the news given by Captain Segar in the latest Singapore International Bunkering Conference (SIBCON) held on October. This is seen as a wise economic move for the country with much of its revenues gained from shipping industries.

DNVCleanEnergyCenterconducted a research with goal of testing the LNG Bunkering investment in Singapore. This included 21 partners like IM Skaugen, Keppel Offshore, BG Group, andMarineTechnologyCenter. In their study, they have concluded that it is is most definitely a very interesting enterprise to venture upon and many have already coordinated with them for future joint development project with Singapore.

The Competition with Port of Rotterdam

Singapore is not the only country interested with LNG Bunkering. ThePortofRotterdamhas earlier revealed its plan of doing the same and has reported operation of LNG Bunkering at the end of the year 2014, which is the same time Singapore has projected to commence its operation. With these, it is apparent that the world will see a tight competition between these two shipping borders in the following months to come.

ThePortofRotterdamhas bragged of over 50 ocean-going ships expected to run on LNG in the year 2015; but with the incentive scheme offered by Singapore to those who will adapt the same, it expects that it will have a more favorable number of shipping vehicles utilizing the power of natural gas too. Singapore has just beaten other countries as the best financial center in the world and its stable economy has attracted numerous investors to put money under its care. This is the edge Singapore has over thePortofRotterdamand it is a very difficult qualification to beat.

The Economic and Environmental Advantage of LNG Use in the Shipping Industry

It has been projected that in the following 13 years, LNG is to be used and adopted by short sea shipping as the primary source of fuel in compliance within the Emissions Control Areas. The price of the fuel may be unstable today, but Authorities in Singapore is optimistic it will fair well in the future leaning towards their advantage.

In the past, ships have only run using sulphur heavy marine fuel oil, but soon after LNG has been discovered, some has already shifted to this fuel has been used by several shipping firms primarily because of its greater availability and cheaper price in comparison to oil prices. Nevertheless has the following reasons for promoting use of this fuel rather than the traditional fuel used in the shipping industry.

1. The growing demand for alternative sources of energy gives increased economic revenue
2. Shipping companies looking for cheaper sources of energy will easily be attracted to this affordable source of energy
3. Only a few countries have expressed interest with LNG making Singapore one of the premier countries investing in this product

In the past year, Singapore managed to set a record of 43.1 million tones of bunker sold and in the year 2013, it expects to supply safety rules and crew training requirements that will help educate shipping personnel with the technical specifications of the utilization of LNG. At first, the delivery of LNG would be through ship-to-ship transfers, but other means of transportation could also be performed by offshore transfer, pipeline, and trucking, which will be explored by the Government in the future.

On the second quarter of next year, Singapore is expected to have its own supply of natural gas through the LNG Terminal constructed atJurongIsland, which is a $1.7 billion investment facility. With the heightened campaign about environmental awareness, Singapore understands the need to support fuel source that will not bring damage to the environment. It has begun construction of a new tank that amounts to $500 million and will be finished by the year 2017. Upon its completion, Singapore will have a more secured position in the world as stable source of natural gas. This is one of the visions of MPA that will soon become a reality and interested stakeholders should grab the opportunity to become part of this campaign.