Mitsui O.S.K. Lines (MOL) has signed a long-term charter contract to operate a 12,000-cbm liquefied natural gas bunkering vessel in Singapore with Pavilion Gas, a Pavilion Energy company. 

Demand for LNG as bunker fuel is expected to grow on a global scale as stricter SOx regulations take effect in January 2020.

Singapore’s Maritime and Port Authority (MPA) is focusing on the development of an LNG fuel supply infrastructure and implementing policies aimed at creating the world’s largest LNG fuel supply port, MOL said in its statement.

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 with Singapore to promote the use of LNG fuel and develop a supply framework, the statement reads.

MOL has already teamed with Sembcorp Marine Specialised Shipbuilding, a unit of Singapore-based Sembcorp Marine Group, for construction of the vessels, and Sinanju Tankers, a bunker barge company, as a ship management partner.

The new ship will be the second LNG bunkering vessel in Singapore, and Asia’s largest, according to MOL. It is slated to start services after its delivery to PGPL in early 2021.

MOL reminded that after establishing its Bunker Business division in April 2017, it secured a number of contracts including a long-term charter deal with Total Marine Fuels Global Solutions, a Total unit, for an 18,600-cbm bunker vessel in February last year.