Keppel Highlights Strategic Positioning Amid Rise of LNG Bunker Market

Keppel says it is looking for new opportunities within the "promising future" of LNG, including LNG as marine fuel.

Keppel Corporation Limited (Keppel) Thursday, alongside the release of its unaudited results for 2016's third quarter and the nine months ending September 30, 2016, said it is looking for new opportunities within the "promising future" of liquefied natural gas (LNG), including LNG as marine fuel.

"The use of LNG as an alternative marine fuel is on the rise as a result of emissions reduction goals set by the International Maritime Organisation and the United Nations Climate Change Conference," said Keppel.

The group says it is well positioned to seise opportunities across the gas market's value chain, noting Keppel's recent order for two LNG-powered tugs.

Keppel reports that its 2016 Q3 net profit down experienced a 38 percent year on year decline, falling to S$225 million ($161.31 million), compared to S$363 million ($260.25 million) during the same period of 2015.

Meanwhile, the group's results for the nine month period to September 30 were down 43 percent year on year, falling to S$641 million ($459.57 million), compared to S$1,120 million ($802.99 million) during the same period of 2015.

In July, Keppel's KS Investments Pte Ltd signed a shareholders agreement with Shell Eastern Petroleum (Pte.) Ltd. (Shell) to develop a LNG bunkering business in Singapore, which has since been launched as FueLNG.

Earlier this month, Keppel O&M announced that, through its subsidiary Gas Technology Development Pte. Ltd. (GTD), it had signed a Memorandum of Understanding (MoU) with Shell to jointly explore potential opportunities to cater to the demand of LNG bunkers in coastal areas, inland waterways, and the international marine sectors.