BG Group and Keppel Offshore & Marine have secured a license to produce LNG bunkers to vessels within the Port of Singapore after submitting a joint bid to the Maritime and Port Authority of Singapore.

With the granting of the license, BG Group and Keppel will type a 50-50 three way partnership to ship an end-to-end bunkering answer utilizing LNG sourced from BG Group’s LNG portfolio, constructing on BG Group’s position because the unique aggregator for Singapore’s first 3 million tonnes each year of LNG demand.

Following the beginning of economic operations at Singapore LNG Corporation’s LNG terminal in May 2013, BG Group has to this point delivered 72 cargoes into Singapore from its world LNG portfolio, serving to the nation diversify its power sources and enhance safety of provide. The partnership with Keppel additionally builds on their experience in offshore rig design, building and restore; ship restore and conversion; and specialised ship constructing, in accordance with BG Group.

The new license comes as Singapore seeks to cement its place as the main LNG bunkering hub in Asia. Last September, the Port of Singapore launched a LNG Bunkering Pilot Programme (LBPP) focused for early 2017, in addition to a $8.4 million fund to for the constructing of LNG-fueled vessels.

Steve Hill, Executive Vice President, Global Energy Marketing and Shipping at BG Group commented: “Singapore is one of the world’s most important strategic ports and we look forward to supplying LNG as a fuel for ships in this key market with first delivery expected in 2017. LNG produces considerably lower emissions than conventional marine fuel and can significantly reduce a vessel’s environmental impact. We look forward to working with Keppel on the safe and reliable supply of this cleaner fuel source and the ongoing development of Singapore as a leading hub for LNG in Asia.”

Michael Chia, Managing Director (Marine & Technology) of Keppel Offshore & Marine, mentioned, “The move into LNG bunkering is in line with Keppel’s strategy to provide solutions for the global LNG market, and we are happy to be able to partner BG Group in this exciting new venture. As the exclusive gas aggregator for Singapore, BG Group has the experience of importing LNG into Singapore where they already have a ready supply on Jurong Island. Together with Keppel’s years of experience and expertise in servicing vessels including gas carriers, we will be able to give strong support to MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia.”

In separate information, Royal Dutch Shell introduced Wednesday that it has gained shareholder approval to purchase BG Group Plc, sealing its greatest acquisition to this point amid the worst oil-industry droop in years. The deliberate acquisition will make Shell the world’s greatest liquefied pure fuel dealer. The deal is predicted to shut in mid-February.