Singapore is withdrawing port dues concessions to support the deployment of floating storage regasification units and floating storage units for LNG bunkering and breakbulk activities.
The discount, which had been due to run until December 2024, has been removed with immediate effect, the Maritime and Port Authority of Singapore (MPA) said in a port circular.
Qualifying vessels, either newbuildings or those part of an existing fleet, enjoyed a 50% harbour craft port dues concession of up to $600,000 annually for five consecutive years.
The concession came with a number of conditions including that the FSRU or FSU must be both licensed as a harbour craft and Singapore-flagged.
The MPA said the vessel also had to be deployed at a berth approved by the port master and not at anchorage.
The MPA said it has been working with the harbour craft and shipping community to build up the LNG ecosystem in Singapore to expand storage capacity and supply for LNG bunkering.
This included grants for constructing LNG-fuelled harbour craft and LNG bunker vessels.
The MPA said the delivery of Singapore’s first LNG bunker vessel, the 7,500-cbm FueLNG Bellina in March 2021, has enabled ship-to-ship LNG bunkering to take place in port.
“The expected commencement of operations of Singapore’s second LNG bunkering vessel later this year will further boost Singapore’s LNG bunkering capacity,” the MPA said.
“With adequate capacity for LNG bunkering, MPA will discontinue the 50% harbour craft port dues concession for FSU/FSRUs supporting LNG bunkering and breakbulk activities in port.”
Singapore saw 47.9m tonnes of bunker sales in 2022, a year-on-year decline of 4.3%.
These included about 140,000 tonnes of biofuel blends over more than 90 biofuel bunkering operations as well as 16,000 tonnes of LNG bunker sales.