MPA Singapore discontinues LNG bunkering incentive

Maritime and Port Authority of Singapore (MPA) has decided to discontinue the 50% harbour craft port dues concession which was launched in 2021 for floating storage units (FSUs) / floating storage regasification units (FSRUs) supporting LNG bunkering and breakbulk activities in port.

The discontinuation with immediate effect was announced in MPA’s circular on 6 February.

“With adequate capacity for LNG bunkering, MPA will discontinue the 50% harbour craft port dues concession for floating storage units / floating storage regasification units supporting LNG bunkering and breakbulk activities in port with immediate effect”, it said.

The port authority said it had 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. This included grants for the construction of LNG-fueled 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, MPA explained.

The Brassavola LNG bunker ship, with a capacity of 12,000 cubic metres is scheduled to become operational in the first quarter of 2023.

The vessel is owned by Indah Singa Maritime Pte. Ltd., a wholly-owned subsidiary of MOL and will be chartered by Pavilion LNG Bunker I Pte. Ltd., a wholly-owned subsidiary of Pavilion Energy.

Under a long-term agreement with Pavilion Energy, TotalEnergies Marine Fuels will employ Brassavola to supply LNG bunker to its customers as one of three licensed suppliers of LNG bunker fuels in the Port of Singapore.