The Maritime and Port Authority of Singapore is set to launch a "Request for Proposal" in the coming weeks to issue additional LNG bunker supplier licenses in Singapore to meet the growing demand for cleaner fuels, Senior Minister of State for Transport and Foreign Affairs, Chee Hong Tat, said Oct. 6.

"The number of licenses will depend on commercial demand. We will engage the bunkering companies on this and assess how we can support the industry’s growth," he said during his opening address at the 21st Singapore International Bunkering Conference and Exhibition, or SIBCON.

Singapore will have an LNG bunker supply capacity of up to 1 million mt per annum from 2021, Chee said, adding that this quantity translates to about 300 ship-to-ship LNG bunkering operations annually.

To facilitate regular ship-to-ship LNG bunkering in the Port of Singapore, two MPA co-funded LNG bunker vessels will also be delivered to Singapore by 2021, he said. "To date, we have performed more than 270 truck-to-ship LNG bunkering operations," he added.

Decarbonization in focus

The growth in LNG as a marine fuel comes as stricter environmental rules loom in global shipping.

In April 2018, the International Maritime Organization laid out its strategy on greenhouse gas emissions, aiming to cut the shipping industry's total GHG output by at least 50% from 2008 levels by 2050 and to reduce CO2 emissions per transport work by at least 40% by 2030.

LNG as a marine fuel not only tackles sulfur emissions, but compared with existing heavy marine fuel oils, LNG also emits 90% less nitrogen oxide. Additionally, through best practices and appropriate technologies, LNG minimizes methane leakage and realistically reduces GHG emissions by 10%-20% with a potential for up to 25%, according to industry sources.

"As the maritime community continues the search for low or zero-carbon fuels to meet IMO’s 2050 goals, LNG is a viable transitional fuel to mitigate CO2 emissions from ships," he said, adding that a number of first movers have made investments in LNG-fueled vessels, including CMA CGM, Hapag Lloyd, Eastern Pacific Shipping and BHP.

"Beyond LNG, we will do our part to invest in the search for the green fuels of the future for shipping," he said.

Singapore LNG bunkering initiatives

Singapore, the world's largest bunkering port, has been at the fore in developing its ecosystem and infrastructure to support LNG bunkering.

On Oct. 1, Singapore-based licensed LNG bunker supplier FueLNG held a virtual naming ceremony for Singapore’s first LNG bunkering vessel -- FueLNG Bellina -- providing a further boost to the accelerated use of LNG as a marine fuel.

Singapore is also actively encouraging vessels, which call at its port to use cleaner fuels such as LNG, by providing port dues concessions, and co-funding the building of LNG-fueled bunker tankers.

As early as 2017, Singapore also launched the Technical Reference 56, or TR 56, to provide a reliable and transparent framework for LNG bunkering operations in the Port of Singapore.

Among other initiatives, it has also spearheaded the formation of a network of global LNG-ready ports to encourage the adoption of LNG bunkering by shipowners and deepen cooperation and information sharing related to LNG bunkering.