Singapore-based PSA Marine has awarded a contract to build one dual-fuel LNG harbour tug and will award another contract in January.
Both will be scheduled for delivery in 2019.
PSA Marine will receive a grant of up to SG$2 million (US$1.4 million) for each tug from the Maritime and Port Authority of Singapore (MPA) under its LNG bunkering pilot program.
Half of the MPA's SGD $12 million pilot program will co-fund the building of new LNG bunker vessels (LBVs) to enable the development of ship-to-ship LNG bunkering at the port. The remaining half will be used to top up MPA's existing co-funding program to build LNG-fuelled vessels.
Launched in 2015, the initial funding has supported Keppel SMIT Towage, Maju Maritime, Harley Marine Asia, Sinanju Tankers and PSA Marine.
Applications for the new fund for the building of LBVs are open to Singapore-incorporated companies until March 31.
MPA Chief Executive Andrew Tan said the implementation of the International Maritime Organisation's (IMO) 0.5 per cent global sulphur cap by 2020 meant LNG was a viable and tested solution for ship owners.
"As the world's largest bunkering hub, MPA will support future demand by promoting the development of ship-to-ship LNG bunkering in the Port of Singapore," said Mr Tan.
