Keppel grows LNG business
Keppel Offshore & Marine Ltd. (Keppel O&M) has strengthened its standing in the LNG-related business by securing contracts to build its first two dual-fuel diesel LNG harbor tugs. The two tugs are expected to use bunkering services provided by the Keppel-Royal Dutch Shell (Shell) JV company, FueLNG Ltd. (FueLNG).
In addition, Keppel O&M has also entered into a Memorandum of Understanding (MOU) with Shell to jointly explore potential opportunities in the LNG sector.
Keppel O&M's wholly owned subsidiary Keppel Singmarine Ltd. (Keppel Singmarine) secured the tug contracts from Keppel Smit Towage Ltd. (Keppel Smit) and Maju Maritime Ltd. (Maju) who have ordered one unit each.
The tugs will be built to Keppel's proprietary design which won the Outstanding Maritime R&D and Technology Award at the 2015 Singapore International Maritime Awards. The Maritime and Port Authority of Singapore is co-funding up to $1.5 MM for each tug under its LNG Bunkering Pilot Program (LBPP) Grant. The tugs are expected to be completed in 2018.
FueLNG is a new 50-50 JV company incorporated by Keppel and Shell which secured a license as one of only two companies to provide LNG bunkering services in Singapore. For Keppel Smit and Maju's dual-fuel tugs, FueLNG will be providing LNG bunkering services while Shell will be supplying the LNG fuel over a period of 10 years under separate contracts with the towage companies.
To bolster its efforts in the LNG-related business, Keppel O&M, through its subsidiary Gas Technology Development Ltd., signed an MOU with Shell's subsidiary, Shell Eastern Petroleum Ltd., to jointly explore potential opportunities to cater to the demand of LNG as a fuel in coastal areas, inland waterways and the international marine sectors.
The partnership will leverage Keppel's strength in ship building and design, and Shell's experience as a global leading energy supplier to work with potential customers to develop technical and commercial solutions for their LNG fuel needs.
- Gasum powers Equinor's platform supply vessel with bio-LNG
- ADNOC deploys pioneering AI-enabled process optimization technology
- Mexico Pacific announces long-term LNG SPA with POSCO International
- ONEOK to acquire Medallion and controlling interest in EnLink for $5.9 B
- Golar LNG signs EPC deal for $2.2-B MK II FLNG conversion project
Comments