The Port of Singapore is inviting interested companies to tap into a $12 million (Singapore) fund for the building of vessels fueled by liquefied natural gas.

The Maritime and Port Authority of Singapore (MPA) will provide funding of up to S$2 million per vessel, capped at two successful funding applications per company.

The program marks another step by MPA toward the eventual launch of the LNG Bunkering Pilot Program (LBPP) targeted for early 2017. The aim of the LBPP is to develop Singapore as a key LNG bunkering hub in Asia.

The money will come from MPA’s MINT Fund, which encourages local and foreign companies with a local presence to undertake maritime-related research and development, using Singapore’s port and maritime facilities as the test bed for their innovations. MINT Fund funds up to 50 percent of costs for projects engaged in either R&D into or test-bedding in Singapore of new or improved products, processes, and applications relevant to the maritime industry.

To qualify for funding under the LNG program, companies must be incorporated in Singapore, and the funded vessels must be flagged under the Singapore registry or licensed for activity in Port of Singapore for a period of at least five years.

MPA has been collaborating closely with partner agencies, industry stakeholders and technical experts, to develop LNG bunkering standards, procedures and infrastructures. Last July, MPA announced a request for proposal for interested parties to apply for the LNG bunker supplier license that would allow the licensee to supply LNG bunkers to vessels in the Port of Singapore.

In 2014, Singapore’s bunker industry recorded more than 42 million tons in bunkers sales volumes, maintaining the port’s position as the world’s top bunkering port.