Petronas Puts LNG Bunkering High on Agenda

Malaysian oil and gas company Petronas has set sights on tapping into the potential of burgeoning LNG bunkering market.

The strategy is in line with Malaysia’s plans to become the regional LNG bunkering hub, especially in the wake of growing uptake of LNG as marine fuel triggered by the industry’s switch to more-environmentally marine fuels.

“Efforts are now being put in place towards advocating LNG as the preferred marine fuel of choice. In close collaboration with industry associations like MOSVA, programmes are aligned to encourage migration; to develop necessary infrastructures to support a swift and effective migration of local (currently diesel-fueled) offshore support vessel (OSV) fleet to LNG, as the cleaner option,” the company said in its Activity Outlook for 2019-2020.

The company said that the first commercial LNG bunkering is poised for start-up by second half of 2019 from a number of facilities, starting with those based in Sg Udang, Melacca and Pengerang, Johor, followed by Kemaman, Terengganu and Labuan in Sabah.

Dual-fueled LNG-based engines are expected to be the future solution, according to Petronas.

On November 1st, Peronas LNG conducted its first LNG supply operation at the Regasification Terminal Pengerang (RGTP). The facility loaded the world’s largest LNG bunker vessel Kairos, which has just swung into operation.

The company believes that small-scale LNG opportunities will increase from the utilisation of alternative cleaner fuel such as LNG, on the back of the global sulphur cap entering into force in January 2020.

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