Speech by Grace Fu, Minister of Sustainability and Environment, at the naming ceremony of HN5506 LNG dual-fuel VLCC vessels, 23 January 2024
His Excellency Dato' Dr. Azfar Mohamad Mustafar, Malaysian High Commissioner to Singapore,
Captain Rajalingam Subramaniam, Chairman of AET and Chairman and Group CEO of MISC,
Mr Teo Eng Dih, Chief Executive Officer of the Maritime and Port Authority of Singapore,
Mr. Zahid Osman, President and CEO of AET,
Distinguished guests,
Ladies and gentlemen,
1 Very good morning everyone.
2 It is my pleasure to join you here at PSA Keppel Terminal to celebrate the inaugural naming of HN5506, AET's latest Singapore-flagged, dual-fuel liquefied natural gas (LNG) very large crude oil carrier (VLCC). PSA Keppel Terminal is a place I know quite a bit, having worked with PSA years ago.
3 It is a true honor for me to be the sponsor of this magnificent ship, which represents a step forward in improving the efficiency of the maritime industry.
CLIMATE CHANGE AND THE MARITIME INDUSTRY
4 2023 was another "record" year for climate change. Globally, we saw communities grappling with the adverse impacts of climate change. From devastating wildfires in Hawaii and Canada to deadly floods in Libya and Greece, and unprecedented heat waves on virtually every continent, in the hottest year on record. Singapore also recorded our highest temperature in 40 years.
5 The maritime industry is not safe from the adverse effects of climate change. Sea level rise, coastal erosion and drought conditions can impact shipping channels and port operations. More frequent and intense extreme weather events can disrupt shipping routes and endanger maritime operations.
6 And these are already impacting us in practice. Severe droughts last summer caused critically low water levels in the Panama Canal, reducing traffic by 40%. According to a study by RTI International, climate change could cost the shipping industry up to $10 billion annually by 2050, and up to $25 billion annually by 2100.
7 At the same time, maritime transport must play a role in reducing its emissions and contributing to the fight against climate change. According to the latest IMO study, global shipping accounts for approximately 3% of global greenhouse gas emissions. And its emissions are expected to continue increasing.
8 Opportunities exist to improve the energy efficiency of the existing fleet to reduce fuel use and costs, and modernize or build new ships to transport new green fuels. The maritime industry also has significant opportunities to enable the transportation of new alternative fuels and remain the backbone of global trade and the lifeblood of the global economy. Singapore, a maritime nation whose history is inextricably linked to the sea, is ready to play its part.
DECARBONIZATION OF THE MARITIME INDUSTRY
9 The international community is taking action. The IMO has raised ambitions for international shipping to achieve net-zero emissions by or around 2050; reduce its emissions intensity; and increase the adoption of zero or near-zero emissions technologies, fuels and energy sources.
10 As a global hub port and international maritime hub, Singapore will play its role in catalysing the greening of international shipping. We actively contribute to and facilitate consensus at the IMO. And we are working with like-minded partners to create sustainable maritime ecosystems, for example by establishing green and digital shipping corridors to the Americas, Europe and Asia, developing harmonized standards and regulations for the safe handling and supply of future marine fuels such as methanol , ammonia and hydrogen, and support technical assistance and capacity building programs for our partners and support South-South collaboration.
THE EFFORTS OF THE AET
11 I am encouraged to hear about AET's commitment to sustainable shipping. AET has been built over generations in Singapore and I am glad that it has continued to progress under the current leadership. The delivery of VLCC HN5506 is an example of how partnerships can promote environmental sustainability and support efforts to build a climate resilient future.
12 New LNG ships can be more energy efficient and help address methane slippage. The HN5506 has an optimized hull shape to reduce drag, an improved rudder design to improve maneuverability and a wake duct to improve propeller efficiency. The main engine is also built on a modular concept to allow for future retrofit options to potentially run on low or zero carbon fuels. AET is making plans for new carriers that can use new marine fuels in the future.
SINGAPORE SHIP REGISTER
13 I am also pleased to announce that with the registration of HN5506, the Singapore Ship Registry has surpassed the 100 million gross tonnage milestone. The Singapore Ship Registry began in 1966 and has expanded over the years to become a flag of quality supporting the growth of the maritime industry.
14 My sincere congratulations to the generations of civil servants and our strong tripartite partnership, and to the AET, the MPA and all the partners involved. I look forward to seeing HN5506 embark on her exciting voyages around the world and lead the way towards more sustainable shipping in our region.
CONCLUSION
15 In closing, although the path of climate action may encounter rough waters at times and strong winds at others, the direction is clear. Let our commitment, our innovation and our partnerships be the wind in our sails, propelling the โshipโ we call home towards a more sustainable future. And let's do it at full steam, while time, tides and climate change wait for no one.
16 Thank you once again, AET, for the privilege of being the Lady Sponsor of HN5506.
17 I wish you all a productive and enjoyable day. Thank you.
