Business

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.

Published

2 years ago

July 12, 2023

Admin

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

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

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TMD Energy becomes first Malaysian bunker supplier to list on NYSE American

Straits Energy Resources’ subsidiary announces that its shares have been listed on 21 April, becoming the first Malaysian marine bunker supplier to achieve a listing on a major US exchange.

Published

9 hours ago

April 22, 2025

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TMD Energy Limited (TMD Energy), a Malaysia and Singapore-based provider of integrated marine bunkering services and a Straits Energy Resources Berhad (SER) subsidiary, on Tuesday (22 April) announced that its shares have been listed on 21 April and began trading on the NYSE American under the ticker symbol “TMDE”.

Dato’ Sri Ron Ho Kam Choy, Chairman, Executive Director, and Chief Executive Officer of TMD Energy, said: “We are proud to become the first Malaysian marine bunker supplier to achieve a listing on a major US exchange, reinforcing our position as one of the industry’s leading players.

“Leveraging Malaysia’s strategic location along major shipping routes including the Straits of Malacca and the South China Sea, as well as resilient demand for bunker fuel in the region and globally, we are well positioned for further expansion. On top of that, TMD Energy is also the first Malaysian company to list on the NYSE American.

“Our listing in NYSE American will help us to enhance our international profile, expand our reach, capture new markets, and deliver sustainable, higher returns to our shareholders.”

TMD Energy’s share price opened at USD 3.26 on Monday, rising to an all-time high of USD 4.12 on its market debut before closing at USD 3.63, which was 11.69% higher than its initial public offering (IPO) price of USD 3.25 per share. This gave the company a market capitalisation of USD 83.85 million (equivalent to approximately MYR 367.2 million) on its first day as a publicly listed company.

TMD Energy’s IPO was priced at USD 3.25 per share, and total gross proceeds (excluding the over-allotments) before deducting underwriting discounts and other related expenses were approximately USD 10.08 million (equivalent to approximately MYR 44.13 million).

Proceeds from the IPO will be used for the purchase of cargo oil; defraying listing expenses; and working capital and other general corporate purposes.

The company has granted the underwriter a 45-day option to purchase up to an aggregate of 465,000 additional shares to cover over-allotments at the IPO price, If the underwriter exercises their option to purchase the additional shares in full, the total gross proceeds before deducting underwriting discounts and other related expenses from the offering are expected to be approximately USD 11.59 million.

Dato’ David Yoong Leong Yan, Executive Director of TMD Energy, said: “Our debut on the NYSE American is a key milestone in our journey of growth. While continuing to drive strong organic growth, as part of our strategic growth initiatives, we remain focused on identifying and pursuing strategic mergers and acquisition opportunities that align with our long- term vision and strengthen our regional presence.”

Manifold Times previously reported SER announcing its proposal to list its oil bunkering segment via the listing and quotation of the ordinary shares in its 76.68%-owned subsidiary, TMD Energy, on the New York Stock Exchange American (NYSE American).

TMD Energy and its subsidiaries (TMD Energy Group) are mainly involved in marine fuel bunkering services specialising in the supply and marketing of marine gas oil and marine fuel oil to various types of ships and vessels at sea. In addition, the company provides vessel chartering services and vessel management services.

TMD Energy Group operates in 19 ports across Malaysia, with a fleet of 15 well-maintained bunkering vessels with capacities ranging from 540 dwt to 7,820 dwt, of which nine are double-bottom and double-hull vessels with an average cargo-carrying capacity of 4,200 dwt each. Its customers include ship owners and operators, shipping lines, logistics and freight companies, as well as oil and gas traders or brokers.

TMD Energy’s growth strategy includes expanding its market presence across Southeast Asia, growing its bunkering fleet, providing ship management services to external customers and diversifying its fuel offering to include eco-friendly alternative fuels such as biodiesel.

TMD Energy is part of SER, a Fortune Southeast Asia 500 company listed on the ACE Market of Bursa Malaysia Securities.

Photo credit: TMD Energy
Published: 22 April, 2025

LNG Bunkering

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

After departing from Saijo Shipyard, LNG fuel will be supplied directly to “Verde Heraldo” through shore-to-ship bunkering at Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

Published

9 hours ago

April 22, 2025

Admin

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

Mitsui OSK Lines (MOL) on Friday (18 April) said the naming and delivery ceremony for the LNG-fuelled Capesize bulker, which MOL ordered for JFE Steel Corporation, was held at the Saijo Shipyard of Imabari Shipbuilding.

The vessel was named the Verde Heraldo, which means “Green Pioneer” in Spanish, by JFE Steel President and CEO Masayuki Hirose. MOL executives including President & CEO Hashimoto were also on hand for the ceremony.

After departing from Saijo Shipyard, LNG fuel will be supplied directly to the vessel through shore-to-ship bunkering at the Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

The Verde Heraldo will sail under long-term transport contracts to supply raw materials for JFE Steel's mills, providing both reduced environmental impact and safe and reliable marine transport services.

About Verde Heraldo

LOA: 299.99 m
Breadth: 50.00 m
Draft: 18.436 m
Deadweight tonnage: 210,321 tonnes
Shipyards: Imabari Shipbuilding and Nihon Shipyard

Photo credit: Mitsui OSK Lines
Published: 22 April, 2025

Business

ENGINE: Adverse weather keeps bunker operations suspended in Zhoushan’s OPL area

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended due to rough weather; some suppliers expect to fully resume operations in OPL area by 22 April.

Published

9 hours ago

April 22, 2025

Admin

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended since Saturday due to rough weather, according to a source on Monday (21 April).

However, bunker operations have resumed this morning at Zhoushan’s more sheltered Xiushandong anchorage and the inner anchorage of Mazhi.

The port is currently experiencing strong wind gusts of 24–27 knots and swells approaching one meter.

Several suppliers expect to fully resume bunkering operations in the OPL area by tomorrow (22 April), the source said.

By Tuhin Roy

Photo credit: Manifold Times
Published: 22 April, 2025