Keppel wins dual-fuel tugs order

It also inked a deal with Shell.

Keppel Offshore & Marine Ltd (Keppel O&M) has strengthened its track record in the Liquefied Natural Gas (LNG)-related business by securing contracts to build its first two dual-fuel diesel LNG harbour tugs.

The two tugs are expected to use bunkering services provided by the Keppel-Royal Dutch Shell plc (Shell) joint venture company, FueLNG Ltd (FueLNG).

In addition, Keppel O&M has also entered into a Memorandum of Understanding (MOU) with Shell to jointly explore potential opportunities in the LNG sector.

Keppel O&M's wholly owned subsidiary Keppel Singmarine Pte Ltd (Keppel Singmarine) secured the tug contracts from Keppel Smit Towage Pte. Ltd (Keppel Smit) and Maju Maritime Pte. Ltd. (Maju) who have ordered one unit each.

The tugs will be built to Keppel’s proprietary design. The Maritime and Port Authority of Singapore is co-funding up to S$2 million for each tug under its LNG Bunkering Pilot Programme (LBPP) Grant. The tugs are expected to be completed in 2018.

Meanwhile, to bolster its efforts in the LNG-related business, Keppel O&M, through its subsidiary Gas Technology Development Pte. Ltd., signed an MOU with Shell’s subsidiary, Shell Eastern Petroleum (Pte) Ltd, to jointly explore potential opportunities to cater to the demand of LNG as a fuel in coastal areas, inland waterways and the international marine sectors.

The partnership will leverage Keppel’s strength in ship building and design, and Shell’s experience as a global leading energy supplier to work with potential customers to develop technical and commercial solutions for their LNG fuel needs.