Mitsui O.S.K. Lines (MOL) has announced the signing of a long-term charter contract with Pavilion Gas Pte Ltd. to operate Asia’s largest LNG bunkering vessel.
MOL’s project with Pavilion is part of an initiative to build a cooperative structure for LNG in the private sector, and the Japanese shipping company has partnered with Sembcorp Marine Specialised Shipbuilding for the construction of the vessel.
The new ship will be the second LNG bunkering vessel in Singapore and is scheduled to begin services after its delivery to Pavilion in early 2021.
A statement from MOL read: “MOL continually promotes development of infrastructure to supply LNG fuel and drives LNG-fuelled vessels.”
Demand for liquefied natural gas (LNG) as a bunker fuel is predicted to grow significantly as the maritime sector prepares for the International Maritime Organization’s (IMO) 2020 sulphur regulations.
The sulphur cap, which takes effect on January 1, 2020, requires fuels used by seafaring vessels to contain no more than 0.5% sulphur.
Singapore's Maritime and Port Authority (MPA) is placing a considerable focus on the development of LNG infrastructure, including the creation of the world’s largest LNG fuel supply port.
In addition to this, the Japanese government has concluded a Memorandum of Understanding (MoU) with seven other countries, including Singapore, to cooperate on the development of LNG as a marine fuel and build a supply framework.