LNG, Energy Transition, Renewables, Emissions

April 10, 2025

Singapore’s MPA gets 14 proposals under EOI to scale up LNG bunker supply

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HIGHLIGHTS

Eight submissions included bio-methane, e-methane solutions

To invite applications for additional bunker supply licenses by early 2026

Sea-based LNG reloading trials targeted by H2 2025

The Maritime and Port Authority of Singapore has received 14 proposals under its Expression of Interest to scale up the supply of LNG as marine fuel in the Port of Singapore, the MPA said in a statement on April 10.

To support the demand for LNG, the MPA said it expects to call for applications for additional bunker supply licenses — including those covering bio- and e-methane — by early 2026.

The MPA launched the EOI in December 2024, and the deadline for proposals was Feb. 28, 2025. The move comes as the MPA advances its sustainable shipping goals while also being committed to international environmental shipping regulations.

The EOI received participation from 18 companies including energy companies, fuel suppliers, traders, bunker operators, and storage providers, the MPA said.

"The range of submissions reflects the industry's readiness to support sea-based LNG reloading to complement existing onshore infrastructure and supply more options," it said.

Eight of the submissions included bio-methane and e-methane solutions, it shared. Bio-methane is produced from organic waste, and e-methane is produced using renewable electricity.

These fuels can offer lower lifecycle greenhouse gas emissions and support the needs of international shipping for additional options for vessel operators on the energy transition pathway, the MPA said.

The MPA will work with shortlisted companies to carry out sea-based LNG reloading trials by the second half of 2025, it said.

It will also develop plans to promote the use of bio-methane and e-methane as marine fuels in Singapore.

"The trials will assess scalability, technical feasibility, safety, operational readiness, and digital connectivity, as well as measures to address methane slip," the MPA said.

"Insights from the proposals and trials will inform MPA's review of the LNG bunkering licensing framework, including enhancements to existing supply arrangements to better meet the needs of international shipping. These efforts contribute to the emission reduction efforts discussed at the International Maritime Organization," it added.

In 2024, the city-state's marine fuel sales volume hit a record high of 54.92 million mt, rising 6% from the previous record in 2023, according to the MPA. Alternative bunker fuels surpassed the 1 million mt mark for the first time last year. Of these, biofuel blends accounted for 0.88 million mt, representing a 69.2% year-over-year increase, while LNG bunker volumes grew more than four-fold to more than 460,000 mt.

LNG bunkering potential

At an industry event in March, Singapore LNG Corporation Senior VP, LNG Market & Business Solutions Atul Nargund said the country could see at least 2 million-3 million mt/year of demand for LNG as a marine fuel in the coming years.

"Today, we are able to handle about 1 million mt/year comfortably and by 2028, we would be able to handle up to 3 million mt/year," Nargund said.

In 2024, SLNG signed agreements with Mitsui O.S.K. Lines, Jurong Port, and Wood to develop the country's second LNG terminal. Together with the existing SLNG Terminal on Jurong Island, it will allow SLNG to increase its combined LNG throughput capacity to up to 15 million mt/year.

Among the cleaner fuels available or developed presently worldwide, LNG is considered an immediate fuel solution to meet shipping's decarbonization pathway, industry sources said.

In addition to offering numerous environmental benefits, the LNG supply chain is well established, and the fuel is available at most major ports worldwide, making it a preferred choice for many. Pressured international LNG prices will also likely encourage increased adoption of the fuel, the sources said.

Platts, part of S&P Global Commodity Insights, assessed LNG Bunker Singapore at $673.036/mt on April 9, down about 13.3% from March 10.


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