Bunker suppliers in Fujairah in the UAE have been receiving offers to purchase marine fuel from vessels that bought contaminated high-sulphur fuel oil (HSFO) in Singapore.
14 April, 2022
The Maritime Authority of Singapore (MPA) was notified on 14 March that a number of ships had been supplied with HSFO containing high concentration levels of Chlorinated Organic Compounds (COC).
The contaminated fuel was supplied by trading firm Glencore to Chinese bunker supplier PetroChina, which in turn supplied about 200 ships in the Port of Singapore. “Of these, about 80 ships have reported various issues with their fuel pumps and engines,” MPA said.
A number of Fujairah bunker suppliers and traders confirmed that they have been receiving enquiries from shipping firms about the possibility of unloading, or “de-bunkering”, the contaminated fuel. “Last week we received three enquiries about de-bunkering in Fujairah, but hardly anyone is keen on buying it,” a Fujairah supplier said.
“If these vessels want to sell contaminated bunker fuel oil in the Middle East, then Fujairah is their best option as most of the other bunkering locations in the region are basically one supplier and mostly governmental companies,” another trader said.
One source mentioned a supplier that might be interested, but this could not be confirmed.
Bunker suppliers tend not to be keen on acquiring contaminated product as reblending or diluting it carries additional costs and does not necessarily ensure its safety for vessel engines.
“We have to be very cautious because the nature of the contamination means heavy diluting may not get rid of the problem,” a shipping source said.
Bunker fuel supplied in Singapore must meet ISO 8217 international standards. The fuel supplied by Glencore adhered to that, but ISO 8217 does not test for COC. “It is not easy to detect COC because you need a special and very expensive test to be carried out and only three laboratories in the world can do this test,” according to a supplier.
With around 140,000t of off-specification bunker fuel supplied, some could potentially be offered as slops or used by power utilities, according to traders.
By Elshan Aliyev
Photo credit and source: Argus Media
Published: 18 April, 2022
Pre-Series A financing led by Newtown Partners with participation from Wavemaker Partners, TMV and Innoport, joining existing investors SGInnovate and others.
Vessels previously going to ARA ports would not consider bunkering elsewhere; however, it is now recommended to check the price at alternative ports.
Offers VLSFO/HSFO and MGO together with debunkering facility for complete IMO 2020 solution at Falmouth.
2002-built 7,829 dwt bunker tanker will be purchased for USD 3.5 million (RM 14.5 million) entirely via cash over a period of three (3) years.
China’s bonded bunker fuel sales rose modestly to 1.78 million mt in December, as demand from the shipping sector grew boosted by robust year-end activity.
Strength in ship management and shipbroking says Xinhua-Baltic International Shipping Centre Development Index.
Program introduces periodic assessments, mass flow metering data analysis, and regular training for relevant key personnel to better handle the MFMS to ensure a high level of continuous operational competency.
U.S. Claims Register Summary recorded a total USD 833 million claim from a total 180 creditors against O.W. Bunker USA, according to the creditor list seen by Singapore bunkering publication Manifold Times.
Glencore purchased fuel through Straits Pinnacle which contracted supply from Unicious Energy. Contaminated HSFO was loaded at Khor Fakkan port and shipped to a FSU in Tanjong Pelepas, Malaysia to be further blended.
Individuals were employees of surveying companies engaged by Shell to inspect the volume of oil loaded onto the vessels which Shell supplied oil to; they allegedly accepted bribes totalling at least USD 213,000.
MPA preliminary investigations revealed that the affected marine fuel was supplied by Glencore Singapore Pte Ltd who later sold part of the same cargo to PetroChina International (Singapore) Pte Ltd.
‘MPA had immediately contacted the relevant bunker suppliers to take necessary steps to ensure that the relevant batch of fuel was no longer supplied. Further investigations are currently on-going,’ it informs.
