Asia/Pacific News
Singapore Cuts LNG Bunkering Subsidy
Singapore's authorities have cut a subsidy aimed at supporting the development of LNG bunkering infrastructure in the city-state's waters.
The Maritime and Port Authority previously offered a 50% harbour craft port dues concession to floating storage units and floating storage regasification units supporting LNG bunkering and breakbulk activities within Singapore port limits.
This discount has been discontinued with immediate effect, the authority said in a circular this week.
"MPA has been working with the harbour craft and shipping community to build up the LNG ecosystem in Singapore to expand storage capacity and supply for LNG bunkering," the MPA said in the circular.
"This included grants for the construction of LNG-fuelled harbour craft and LNG bunker 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.
"The expected commencement of operations of Singapore's second LNG bunkering vessel later this year will further boost Singapore's LNG bunkering capacity.
"With adequate capacity for LNG bunkering, MPA will discontinue the 50% harbour craft port dues concession."
Singapore saw a total of 16,000 mt of LNG bunker sales in 2022, down from 50,000 mt a year earlier. Record gas prices last year saw many dual-fuelled ships capable of running on LNG choosing to burn conventional bunker fuels instead.
