Thursday, October 28

Petronas wants govt to provide incentives for maritime industry to promote cleaner fuel


Petronas wants the government to provide incentives to promote cleaner fuels for the maritime industry. 

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) hopes to convince the government to provide incentives as a move to support the utilisation of cleaner fuels in the maritime industry, Vice President LNG marketing and trading, Ahmad Adly Alias said.

“Singapore has already taken proactive steps towards providing such incentives and financial assistance,” he told reporters at the Green Shipping Conference organised in collaboration with the World Maritime Week Malaysia here today.

Singapore is granting an incentive of up to S$2 million (S$1=RM3.03) to industrial players to convert to more greener fuel (SGD1=RM3.03).

Ahmad Adly also urged port authorities and operators to work together to facilitate the usage of cleaner fuel and facilities by offering a special tariff and utilisation of liquefied natural gas (LNG) powered tugs and vehicles as per the Green Port Policy Agenda.

Under the policy, Malaysia is committed to reducing its carbon emissions level by 40 per cent by 2020.

“We strive to provide compliant fuels to the industry through a special project which aims to make available such fuels as ultra low sulphur fuel oil, very low sulphur fuel oil and low sulphur marine gas oil.

“This is made possible by an enhancement to our existing storage infrastructure in Tanjung Bin Johor, and at Port Klang,” Ahmad said.

Meanwhile, Petronas has indicated it is ready to provide commercial LNG bunkering services by January 1, 2020, in line with the government’s ambition towards making Malaysia a bunkering hub.

It achieved its first milestone in carrying out a reload operation into the world’s largest LNG bunker vessel (LBV), Kairos, on Oct 27, 2018, demonstrating its readiness to support the reloading of LNG for bunkering activities.

Bunkering refers to the supply of fuel for use by ships, and includes the shipboard logistics of loading fuel and distributing it among available bunker tanks.

“We have signed with a few clients, but I can’t disclose their names, and we are currently working towards building up the volume.

“It should be able to contribute to our results next year. I will leave it to Petronas Dagangan to make the announcement because we have appointed them to market the product,” Ahmad said.

In collaboration amongst Petronas subsidiaries and through its shipping arm, MISC Bhd and Avenir LNG Ltd, Petronas is chartering a 7,500 cbm LNG bunkering vessel.

It will be the first to operate in the region , bringing the national oil company closer to realising its LNG bunkering aspiration. – Bernama