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Positioned for the Future
As the premier port for bunkering supplying 50 million tonnes annually, Singapore is gearing up for 2020 when the new International Maritime Organization (IMO) fuel regulation kicks in. From 1 January, the IMO will limit the sulphur content in marine fuel to 0.5%, from 3.5%, in its effort to cut emissions of harmful sulphur dioxide. Ships failing to comply could lose their international certification, preventing them from operating as commercial trading vessels.
As LNG is the most viable option for ships that have not installed exhaust gas scrubbers, the MPA has spent S$26 million to make Singapore an LNG-enabled port. According to industry estimates, using LNG to power ships instead of fuel oil or gas oil can reduce nitrogen oxide and sulphur oxide emissions by 90 to 95%.
Some S$18 million, or up to S$2 million per ship, has gone into co-funding the construction of LNG-powered ships. Another S$6 million went to two licensed suppliers, Pavilion Gas and FueLNG, a joint venture between Shell Eastern and Keppel Offshore & Marine, for the construction of LNG bunker vessels to perform ship-to-ship transfer of the marine fuel. The MPA has also spent a further S$2 million to build up the LNG trucking capabilities at the Singapore LNG (SLNG) Terminal to perform truck-to-ship bunker operations.
The MPA has published a list of 49 licensed bunker suppliers that are able to provide IMO 2020 compliant fuels in Singapore. They can also offer fuel grades ranging from marine gas oil, low sulphur fuel oil, ultra low sulphur fuel oil of 0.1% and the 3.5% heavy bunker fuel oil.

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