MOL, Pavilion Gas Sign Long-Term Deal for LNG Bunker Ship

Under the agreement with Singapore-based Pavilion Gas, a subsidiary of Pavilion Energy, the 12,000 cbm bunkering vessel would be built by Sembcorp Marine and managed by bunker barge company Sinanju Tankers.

The new ship will be the second LNG bunkering vessel in Singapore. It is scheduled to start services after its delivery to Pavilion Gas in early 2021.

The deal was agreed ahead of the upcoming 2020 sulphur cap regulations. Singapore’s Maritime and Port Authority (MPA) is focusing considerable effort on development of an LNG fuel supply infrastructure and implementing policies aimed at creating the world’s largest LNG fuel supply port.

The Japanese government also concluded a Memorandum of Understanding in relation to the cooperation on the development of LNG as a marine fuel” with seven other countries, including Singapore. Since then the Japanese government has worked closely with Singapore to promote the use of LNG fuel and develop a supply framework.

In April 2017, with the aim of speeding up progress on business related to alternative bunker fuels such as LNG, MOL established the Bunker Business Division. In other regions besides Singapore, in February 2018, it signed a long-term charter contract for the world’s largest LNG bunker vessel with Total Marine Fuels Global Solutions, which will offer services in northern Europe. In Japan, MOL will launch the LNG-fueled tugboat Ishin in Osaka Bay in April 2019.