Asia/Pacific News
Singapore Announces New Subsidies for MFMs, LNG Bunkering
Lui Tuck Yew, Singapore's Transport Minister, has announced further government help in the form of tax breaks for bunker industry players over the introduction of mass flow meters (MFM) as well as a subsidised Liquefied Natural Gas (LNG) bunkering pilot project.
"Singapore will implement the mandatory adoption of mass flow meters for bunkering marine fuel oil in the Port of Singapore from January 1, 2017," Minister for Transport Lui Tuck Yew said last week in his opening address at SIBCON 2014.
"To help the industry in the transition, bunker suppliers and bunker craft operators are eligible for benefits under the Productivity and Innovation Credit scheme, administered by the Inland Revenue Authority of Singapore, for their expenditures incurred in adopting the mass flow meter with effect from the Year of Assessment 2015.
"This is on top of the S$80,000 ($50,000) lump sum incentive by [the Singapore Maritime Port Authority] MPA upon MPA's approval of each fitted mass flow meter system for eligible bunker tankers," he added.
In addition, Lui said that the MPA would commence a LNG bunkering pilot project, offering funding of up to S$2 million ($1.25 million) to participants.
"MPA will be commencing work on a pilot program by early 2017 with interested parties of the Liquefied Natural Gas bunker supply chain," said Lui.
"We will provide funding of up to $2 million per vessel for up to 6 LNG fuelled vessels that are participating in this pilot programme that will help us in the testing of safety procedure and standards here in Singapore."
"There are several established modes of LNG delivery such as the use of iso-tank containers, ship-to-ship transfer and terminal-to-ship transfer. For the purpose of this pilot program, MPA is evaluating the most cost-effective mode of LNG delivery to test and establish operational standards and procedures," added Lui.
This news comes amid reports that Singapore aims to be have LNG bunkering facilities by 2020.
