Mexian polypropylene resins producer Indelpro on Monday (25 March) filed for damages against bunkering firm Valero Marketing and Supply Company (Valero) at a U.S. Court, according to documents obtained by Manifold Times.
Indelpro was claiming in excess of $75,000 for physical damage to the fuel tanks, piping, fuel system, and to engines and engine components of the LPG tanker M/V Zoe Schulte due to an alleged contaminated bunker stem.
The bunker stem order was arranged through Indelpro’s agent Unigas International, and broker LQM Petroleum Services, LLC who contacted Valero to carry out physical delivery of the fuel.
Valero delivered about 330 metric tonnes (mt) of 380 cSt RMG and 360 mt of marine gasoil (MGO) DMA to the vessel on 26 March 2018 at Bolivar Roads, Texas.
On 28 March 2018, the M/V Zoe Schulte experienced “serious operational issues” related to the use of bunkers.
An analysis of the samples showed the bunkers not meeting ISO 8217:2010(E) specifications.
In the complaint, Indelpro further claimed Valero to be offering contaminated marine fuel to more than 150 vessels in Texas from 1 January to 31 May 2018.
“The effects of the contaminated marine fuel manufactured and sold into the market by Valero from January 1, 2018, to May 31, 2018, have been well documented and include, vessel breakdowns, engine and machinery malfunctions and damage and economic loss suffered in the form of vessel delays, loss opportunities, and discharge of the contaminated product,” it claims.
“The contamination issues were known to Valero early on and Valero itself refused to purchase its own product for use on vessels chartered by Valero.”
Photo credit: MarineTraffic / Jan Ericsson
Published: 28 March, 2019
Current low prices for road and aviation fuels in September could mean another increase of flashpoint off-spec cases for MGO when players start introducing the products back into the bunker stream.
Some bunker suppliers at various ports have even achieved their sales target for the year; the trend doesn't seem to be slowing down and suppliers are expecting a boom during end of September.
The company has entered a memorandum of agreement with Millenium Satu Ltd to acquire the 7,550 dwt oil tanker to increase service flexibility; vessel will be paid over an installment period of 36 months.
Deloitte & Touche JMs believe IPP has a viable claim against Dr Goh Jin Hian for breaches of his director’s duties to act with skill, care and diligence which he owned to IPP, states court document.
An earlier MPA notice outlined precautionary measures for personnel to observe when conducting marine refuelling operations at port in order to minimise the risk of contracting Covid-19.
Mok’s offence affected public confidence in the use of the MFM system onboard Singapore bunker tankers, and caused an embarrassment to the MPA, said Deputy Public Prosecutors.