Keppel Offshore & Marine has won a contract to build Singapore’s first dual-fuel bunker tanker, which will be owned and operated by Sinanju Tankers Holdings.

The order has been secured by the builder’s wholly-owned subsidiary Keppel Singmarine from Mitsui & Co (Asia Pacific), which has a finance agreement with Sinanju.

The tanker is scheduled for delivery in the second quarter of 2019. As part of the contract, Sinanju and Mitsui AP have an option to order a second similar tanker, which should be exercised within six months from this contract’s effective date.

Sinanju will receive co-funding of up to SGD 2 million (USD 1.5 million) to build the vessel as one of the recipients of the Maritime and Port Authority of Singapore (MPA) LNG bunkering pilot programme.

“The dual-fuel bunker tanker will be the third vessel to be built by Keppel Singmarine under the MPA LBPP and the seventh dual-fuel vessel built by Keppel O&M, extending our track record in LNG-fuelled vessels. With solutions across the LNG value chain, Keppel O&M is in a strong position to capture opportunities as the industry adopts greener solutions,” Abu Bakar, Managing Director (Gas & Specialised Vessels), Keppel O&M, said.

The 7,990 dwt dual-fuel bunker tanker will be the first LNG-fuelled bunkering vessel for Singapore and for Sinanju. Built to the requirements of classification society, Bureau Veritas, the bunker tanker will deliver marine fuels to ocean-going vessels within local port limits.

“Sinanju aims to kick start a green initiative for bunker tankers operating in Singapore; for our vessels to emit less air pollutants while boosting the local use of LNG as a bunker fuel. We will be in good stead when embarking in ship-to-ship LNG bunkering as our next milestone,” Ju Kai Meng, Managing Director of Sinanju Tankers Holdings, said.

Keppel O&M recently delivered the world’s first converted Floating Liquefaction (FLNG) vessel Hilli Episeyo, and is currently building two dual-fuel harbor tugs for Keppel Smit Towage and Maju Maritime, two dual-fuel LNG carriers for Stolt-Nielsen Gas B.V., and two dual-fuel containerships for Pasha Hawaii.