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FOBAS: Possible bunker fuel contamination in Houston and US Gulf area

FOBAS has dealt with a number of problematic very low sulphur fuel oil (VLSFO) from US Gulf region, and specifically from Houston and New Orleans; vessels reported problems with fuel injection equipment.

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Lloyd’s Register Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Tuesday (11 July) released a bulletin highlighting it found issues with very low sulphur fuel oil (VLSFO) from the US Gulf region, specifically from Houston and New Orleans: 

In the last month, FOBAS has dealt with a number of problematic VLSFO RM fuels from the US Gulf region, specifically from Houston and New Orleans. During the use of these fuels vessels have reported varying degrees of problems with the fuel injection equipment, which in a couple of cases has resulted in total loss of power.

The fuels in question have been bunkered from late March through to early May, with more recent fuels still under investigation.

All fuels have had routine ISO 8217 Table 2 testing carried out. Standard analysis shows these VLSFO’s have relatively low viscosities from 61.9cSt down to 7.8cSt @ 50 Deg C. Acid number of these fuels ranged from 0.33mgKOH/g to 2.21mgKOH/g and the fuels in questions were supplied by different suppliers and barges.

Initial detailed testing by FTIR and GCMS methods of these fuels suggests the presence of various glycols, Tetrachloroethylene, unusually high levels of Tetrahydro DCPD (dicyclopentadiene) and Dihydro DCPD.

Although the exact cause of problems is being established, based on the information to hand it is suspected that the presence of these aforementioned components at various concentration levels are likely to have contributed to the reported problems. Initial assessment also revealed that there are some blend components, at least 1-2% that are not a natural part of the usual refinery stream process and seems to be a possible combination of various chemical waste products.

In view of the above, we would suggest that any vessel bunkering in the US Gulf area, particularly around Houston and New Orleans, pay close attention to the fuel quality and ask for assurances from the supplier that the fuel meets not only the ISO 8217 Table 2 but also the general requirements of the standard (Clause 5) as well as stipulations of MARPOL Annex VI regulation 18.3 Attention should be given to the collection of bunker samples. It should be ensured that all parties have witnessed the sampling process and have signed witness forms accordingly, and that the supporting documentation includes records of all the samples considered representative of the fuel as loaded.

Manifold Times previously reported VPS also detecting the presence of Dicyclopentadiene (DCPD) and associated isomers at significantly high levels in VLSFO bunker fuel deliveries in Houston

Related: VPS identifies new bunker fuel contamination at Houston

 

Photo credit: Louis Reed from Unsplash
Published: 12 July, 2023

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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RESIZED Sora Shimazaki on Pexels

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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