Singapore’s maritime regulator has received 50 proposals to supply methanol bunkers.
The Maritime & Port Authority of Singapore (MPA) said more than 60 regional and international energy companies, fuel suppliers, traders, bunker operators and storage companies participated in a request for expressions of interest (EOI) launched last year.
This signalled a “clear business confidence in Singapore as a key offtake location for methanol by international shipping”.
The EOI followed the completion of the world’s first ship-to-containership methanol bunkering in Singapore involving AP Moller-Maersk’s 2,100-teu Maersk Solstice (built 2023).
It sought proposals covering three areas: methanol supply; a methanol bunkering operating model at commercial scale; and alternatives to the physical transfer of methanol to Singapore, to enable a resilient supply to meet the needs of methanol-capable vessels in Singapore in the coming years.
The MPA said 40% of the submissions proposed end-to-end solutions covering all three areas highlighted in the EOI.
“The proposals received for the low-carbon methanol supply and delivery are promising, with several projects already in operation or have crossed final investment decision,” it said.
“Many of the companies plan to use ready storage infrastructure in Singapore and will partner craft operators to build or procure bunker tankers capable of carrying and delivering methanol, taking into consideration MPA’s safety and quality assurance standards, crew training requirements and methanol bunker tanker specifications.
“The proposals received provide strong indications that the industry is preparing for methanol bunker demand to scale up in the coming years, most notably seen in the scheduled delivery of type 2 bunker tankers capable of supplying methanol this year.”
Singapore estimates that domestic demand for methanol as a marine fuel could potentially exceed 1m tonnes per annum before 2030, subject to the pace of developments of supply chains, infrastructure and regulations globally.
The MPA is also reviewing proposals to develop an end-to-end solution to provide low or zero-carbon ammonia for bunkering on Jurong Island together with Singapore’s Energy Market Authority.
The MPA plans to work with shortlisted consortiums on the pre-front-end engineering design to confirm the technical and economic feasibility of the project before selecting a lead developer with the government by early 2025.
Speaking at Singapore Maritime Week on Wednesday, MPA chief executive Teo Eng Dih said: “As an international maritime centre and global hub port, Singapore will work with our tripartite partners and [the] international shipping community to digitalise, enhance energy efficiency and deploy low and zero-carbon emission marine fuels.
“MPA is working with stakeholders to develop pathways for these marine fuels, especially in areas of provision of necessary infrastructure, crew training, regulations and safety standards for bunkering …
“A key priority is to establish the end-to-end value chains for these new fuels.”
