03/24/2021 | Press release | Distributed by Public on 03/24/2021 01:58
The first ship-to-containership Liquefied Natural Gas (LNG) bunkering operation in Asia was undertaken today by CMA CGM, a world leader in shipping and logistics, and FueLNG, a joint venture between Keppel Offshore & Marine Ltd (Keppel O&M) and Shell Eastern Petroleum (Pte) Ltd, and the Maritime and Port Authority of Singapore (MPA). A containership, CMA CGM SCANDOLA, has been fuelled with 7,100m3 of LNG from FueLNG Bellina, Singapore's first LNG bunkering vessel.
Senior Minister of State for Transport and Foreign Affairs, Mr Chee Hong Tat, attended the launch of the bunkering operation held today. Mr Chee said, 'The use of more sustainable fuels is an important element of the decarbonisation strategy. As the shipping industry explores alternative zero-carbon fuels, LNG is a viable transitional fuel. As a global bunkering hub, we are pleased to partner CMA CGM, FueLNG, Keppel Offshore & Marine and Shell Eastern Petroleum, to provide more sustainable bunkering solutions for the shipping industry. It also marks another major milestone as Asia's first ship-to-ship LNG bunkering operation with simultaneous cargo operations.'
CMA CGM SCANDOLA is the first of six new 15,000-TEU LNG-powered containerships which CMA CGM Group has lined-up to be bunkered in Singapore this year. These ships will be deployed on CMA CGM's MEX 1 service between Asia and the Mediterranean.
It is also the first vessel in Asia to conduct simultaneous container loading and discharging operations alongside LNG bunkering operations, shortening port stay time. From Singapore, she will set sail with over 14,800 (twenty-foot equivalent units) containers, comprising household goods, electronic items, machinery and personal protection equipment for the Mediterranean.
This is also the first ship-to-ship operation for FueLNG Bellina. Designed and built by Keppel O&M, the 7,500m3 FueLNG Bellina provides more options for shipowners and operators to bunker LNG in Singapore. FueLNG aims to provide a total of about 30 to 50 ship-to-ship LNG bunkering operations in 2021, extending its track record of over 300 truck-to-ship LNG bunkering operations so far.
Singapore: A leading LNG bunkering hub in Asia
This ship-to-ship LNG bunkering operation by CMA CGM and FueLNG underscores the companies' commitment to contribute to Singapore's ambition to become a leading LNG bunkering hub in Asia.
LNG is currently the best and immediately available solution that can reduce the environmental impact of maritime transport and preserve air quality. It enables a reduction of 99% in sulfur dioxide, 91% in particulate matter emissions and 92% in nitrogen oxide emissions, far surpassing the requirements of current regulations. LNG also provides an initial solution to the challenge of tackling climate change. An LNG-powered vessel emits up to 20% less CO2 than conventional marine fuel-powered systems.
According to Shell's LNG Outlook report, global LNG bunkering demand is estimated to grow to 30 to 50 million tons per annum (MTPA) by 2040. Presently there are about 400 LNG-fuelled vessels in operation or on order, with an expected demand of LNG as marine fuel of nearly 3.5 MTPA.
Mr Stephane Courquin, Chief Executive Officer of CMA CGM Asia Pacific, said, 'CMA CGM is committed to the energy transition in the shipping industry. Today, LNG is the most advanced solution when it comes to preserving air quality. This technology is one of the first steps towards achieving CMA CGM Group's ambitious 2050 objective of carbon neutrality. CMA CGM SCANDOLA is the first of more CMA CGM-operated LNG vessels that will undergo simultaneous cargo and LNG bunkering operations in Singapore. The Group's fleet of LNG containerships will grow to 32 by the end of 2022.'
Ms Quah Ley Hoon, Chief Executive of MPA, said, 'The use of LNG as a marine fuel is fast gaining traction worldwide amid a global push to use cleaner shipping fuels. As the world's top bunkering and transshipment hub port, MPA is pleased that we are able to facilitate Asia's very first ship-to-ship LNG bunkering operation with simultaneous cargo operations. We will continue to work with the industry to promote LNG bunkering in Singapore and drive the transition to more sustainable shipping.'
Mr Chris Ong, Chairman of FueLNG and CEO of Keppel O&M, added, 'We are pleased to kickstart ship-to-ship LNG bunkering operations for the FueLNG Bellina in Singapore, which allows us to fuel larger vessels such as containerships. We have a number of ships lined up for FueLNG Bellina's next bunkering operations, reflecting the strong demand for LNG bunkering in Singapore. LNG is an important part of the clean energy transition and this is in line with Keppel's Vision 2030 to pursue greener energy developments.'
Mr Tahir Faruqui, Director, FueLNG and Head of Shell Downstream LNG, said, 'It's crucial that the shipping sector employs the cleanest fuels available today and we continue to strengthen our network to supply our customers with cleaner burning fuels. In addition, vessels using LNG as a fuel should be comparatively more robust in addressing the financial impact of any CO2 levy potentially imposed in the future. Singapore is a new addition within our global LNG bunkering network of eight countries and nine ports. We plan to double this bunkering infrastructure on key international trade routes by the mid-2020s so that we can support the sector with the capabilities to tackle emissions with urgency.'
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About CMA CGM Group
Led by Rodolphe Saadé, the CMA CGM Group is a world leader in shipping and logistics. Its 566 vessels serve more than 420 ports around the world, on all five continents. In 2020, they transported nearly 21 million TEU (twenty-foot equivalent units) containers. With CEVA Logistics, a world leader in logistics services, CMA CGM handles more than 400,000 tons of airfreight and 2.8 million tons of inland freight every year.
CMA CGM is constantly innovating to offer customers new maritime, inland and logistics solutions. Present on every continent and in 160 countries through its network of 755 offices and 750 warehouses, the Group employs more than 110,000 people worldwide, of which 2,400 in Marseille where its head office is located. Singapore is the Asia Pacific regional headquarters for CMA CGM Group.
FueLNG, a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum (Pte) Ltd, has a proven track record in providing safe, cost-efficient and reliable solutions in Liquefied Natural Gas (LNG) bunkering in Singapore. We are able to provide LNG bunkering to a wide variety of vessels through truck-to-ship or ship-to-ship bunkering.
Awarded the LNG bunker supplier license by the Singapore Maritime and Port Authority in 2016, FueLNG works with industry partners to build a world-class LNG bunkering network and encourage the adoption of LNG as a marine fuel. We have to-date completed more than 300 truck-to-ship LNG bunkering operations.
About the Maritime and Port Authority of Singapore (MPA)
The Maritime and Port Authority of Singapore (MPA) was established on 2 February 1996, with the mission to develop Singapore as a premier global hub port and international maritime centre (IMC), and to advance and safeguard Singapore's strategic maritime interests. MPA is the driving force behind Singapore's port and maritime development, taking on the roles of Port Authority, Port Regulator, Port Planner, IMC Champion, and National Maritime Representative. MPA partners the industry and other agencies to enhance safety, security and environmental protection in our port waters, facilitate port operations and growth, expand the cluster of maritime ancillary services, and promote maritime R&D and manpower development.
About Keppel Offshore & Marine
Keppel Offshore & Marine (Keppel O&M) is a world leader in providing total solutions to the offshore, marine and energy industries. Bolstered by a global network of yards and offices, it has extensive know-how across a wide range of capabilities - design & engineering, new builds, conversions & repairs, and support services
A pioneer in offshore solutions, Keppel O&M has a strong track record in designing and building high-performance offshore platforms, production units and specialised ships. It is a trusted partner in the conversion, repair and modification of diverse and complex rigs and vessels, and is also a developer of integrated solutions for the offshore renewable and infrastructure industries.
Backed by robust operational excellence, Keppel O&M innovates and leverages new technologies to deliver projects on time, on budget, safely, reliably, and to the highest quality. For more information, visit www.keppelom.com.
Shell is an international energy company with expertise in the exploration, production, refining and marketing of oil and natural gas, and the manufacturing and marketing of chemicals. Shell's purpose is to power progress together with more and cleaner energy solutions. We believe that rising standards of living for a growing global population are likely to continue to drive demand for energy, including oil and gas, for years to come. In 2019 Shell had operations in more than 70 countries and sold 74.5 million tonnes of LNG.