Keppel Signs MOU with Shell to Explore Opportunities for LNG Bunkers

Keppel's subsidiary GTD has signed a MoU with Shell to jointly explore potential opportunities related to LNG as fuel.

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

"Apart from relying on our in-house R&D, we are collaborating with leading players in the energy sector that have capabilities complimentary to Keppel's to develop comprehensive and innovative solutions in LNG," said Michael Chia, Managing Director of Marine & Technology at Keppel.

"Through this cooperation framework, Keppel and Shell can combine our resources and expertise as a leading global shipbuilder and energy supplier, and work together in collaboration with stakeholders such as shipping companies, terminal operators, local governments and regulators to meet their needs which may include engine retrofit or setting up coastal LNG storage infrastructure."

In an additional development, Keppel and Royal Boskalis Westminster N.V.(Boskalis) joint ventures Keppel Smit Towage Pte. Ltd (Keppel Smit) and Maju Maritime Pte. Ltd. (Maju) have each ordered a dual fuel LNG-powered harbour tug, with the two vessels set for operation in Singapore following their completion in 2018.

Under separate contracts with the towage companies, LNG for the two tugs will be bunkered by FueLNG, a joint venture between Shell and Keppel, while Shell will be supply the LNG fuel over a 10 year period.

The Maritime and Port Authority of Singapore (MPA) is noted to be co-funding up to S$2 million ($1.46 million) for each tug under its LNG Bunkering Pilot Programme (LBPP) Grant.

"We are also happy that our joint venture, FueLNG, has secured its first two contracts from Shell to provide bunkering services for Keppel Smit and Maju's dual-fuel tugs. Together, Keppel's shipbuilding/design capabilities and LNG bunkering services provide end-to-end solutions for vessel owners turning to LNG as a marine fuel in Singapore," said Chow Yew Yuen, CEO of Keppel.

Earlier this week, Ship & Bunker reported that Shell Western LNG B.V. (Shell) had signed another LNG-bunker supply agreement with Carnival Corporation & plc (Carnival).