Keppel Offshore and Marine (Keppel O&M) subsidiary Keppel Singmarine has won a contract from Mitsui AP to build a dual-fuel bunker vessel for Singapore’s Sinanju Tankers Holdings.

The contract has been awarded under a finance agreement between Mitsui AP and Sinanju.

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It also covers an option to order a second similar tanker within six months from the effective date of the first contract.

When completed, the 7,990dwt dual-fuel bunker tanker will be Singapore’s first LNG-fuelled bunkering vessel.

Set to be built following the guidelines of classification society Bureau Veritas, the tanker will be used to deliver marine fuels to ocean-going vessels within local port limits.

Keppel O&M Gas and Specialised Vessels managing director Abu Bakar said: “The dual-fuel bunker tanker will be the third vessel to be built by Keppel Singmarine under the MPA LBPP and the seventh dual-fuel vessel built by Keppel O&M, extending our track record in LNG-fuelled vessels.

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“We will be in good stead when embarking in ship-to-ship LNG bunkering as our next milestone.”

“With solutions across the LNG value chain, Keppel O&M is in a strong position to capture opportunities as the industry adopts greener solutions.”

Sinanju is set to receive a co-funding of up to S$2m ($1.5m) from Maritime and Port Authority of Singapore’s (MPA) LNG bunkering pilot programme (LBPP) to build the tanker.

Sinanju Tankers Holdings managing director Ju Kai Meng said: “Sinanju aims to kick-start a green initiative for bunker tankers operating in Singapore for our vessels to emit less air pollutants while boosting the local use of LNG as a bunker fuel.

“We will be in good stead when embarking in ship-to-ship LNG bunkering as our next milestone.”

Keppel O&M also recently delivered a converted Floating Liquefaction (FLNG) vessel, Hilli Episeyo.

The company is currently engaged in the construction of two dual-fuel harbour tugs for Keppel Smit Towage and Maju Maritime, two LNG carriers for Stolt-Nielsen Gas, as well as two containerships for Pasha Hawaii.