Keppel Offshore & Marine has secured a contract from FueLNG to build South East Asia’s first liquefied natural gas (LNG) bunkering vessel.

The unit, valued at around SGD 50 million (USD 37.4 million), is scheduled for completion in the third quarter of 2020.

To feature a capacity of 7,500 cubic metres, the dual-fuel bunkering ship will be built to the MTD 7500U LNG design, for greener and safer bunkering activities within the Singapore port.

The vessel’s key features include high manoeuvrability which enables bunkering without tug assistance, as well as propulsion and power management systems that optimise fuel consumption.

FueLNG, a joint venture between Keppel O&M and Shell Eastern Petroleum (Pte), will receive a grant of up to SGD 3 million for the new unit as part of the Maritime and Port Authority of Singapore’s (MPA) LNG Bunkering Pilot Programme (LBPP).

The second company to receive the same grant for the construction of an LNG bunkering vessel is Pavilion Gas.

The grants were earlier unveiled by MPA Singapore and are a part of Singapore’s efforts to help promote ship-to-ship LNG bunkering.