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Glencore Singapore and Straits Pinnacle in legal dispute over contaminated HSFO bunker fuel oil samples

Glencore previously commenced Singapore International Arbitration Centre Emergency Applications against Straits Pinnacle but those applications were dismissed, according to documents obtained by Manifold Times.

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A Case Management Conference between legal representatives of Glencore Singapore Pte Ltd (Glencore) Straits Pinnacle Pte Ltd (Straits Pinnacle) has been scheduled to take place at the High Court of the Republic of Singapore on Thursday (29 September).

The meeting seeks to resolve a dispute relating to the level of contaminants in RMG 380 fuel oil (RMG 380 Fuel Oil) supplied by Straits Pinnacle [Defendant] to Glencore [Claimant].

Glencore, for the preservation of evidence, is seeking to have its elected fuel testing agency Inspectorate (Singapore) Pte Ltd conduct checks of six RMG 380 Fuel Oil test samples currently held by AmSpec Testing Services Pte. Ltd. and CCIC Singapore Pte. Ltd.

“It is the Claimant’s position that the Test Samples are degrading with time in respect of the level of contaminants in the Test Samples, thus the urgency of the matter,” stated Glencore’s lawyers, according to court documents obtained by Singapore bunkering publication Manifold Times

Four of the test samples fall under a January 2022 sale and purchase (S&P) contract of approximately 105,000 metric tonnes (mt) of RMG 380 Fuel Oil, while two of the test samples come under a February 2022 S&P contract of approximately 105,000 mt of RMG 380 Fuel Oil.

Documents further stated Glencore previously commencing Singapore International Arbitration Centre (SIAC) Emergency Applications against Straits Pinnacle, but those applications have been dismissed “because the Claimant’s applications were defective and dismissed for want of jurisdiction,” stated Straits Pinnacle’s lawyers.

Questions arise on ‘Urgent’ Case Management Conference

Interestingly, the Case Management Conference submitted by Glencore’s legal team to Straits Pinnacle on 8 September originally requested for it to take place in the week starting 12 September due to its alleged urgency.

The development reduces the time afforded to Straits Pinnacle to file its affidavit from the standard 21 days to 7 days, argued Straits Pinnacle’s lawyers.

The modus operandi to-date of Glencore’s lawyers seems to be “to overwhelm Straits Pinnacle and its legal team by mounting concurrent and successive applications irrespective of their individual merits,” they observed.

Glencore has concurrently commenced two sets of SIAC arbitrations, two sets of ad hoc arbitrations, two sets of emergency applications pursuant to the SIAC Rules (which has since been dismissed), two sets of originating applications, and documents spanning more than 1,800 pages in total against Straits Pinnacle.

The lawyers added there was “absolutely no urgency to the present applications” as samples of the RMG 380 fuel oil were taken in February 2022 and almost seven months have elapsed before Glencore’s request to hold a Case Management Conference at the high Court.

“This is an abuse of process and the Defendant will address the Honourable Court further on this in due course,” highlighted Straits Pinnacle’s legal team – which successfully pushed back the Case Management Conference to 29 September.

Related: Singapore: “Ore Shangdong” owner in damages claim against PetroChina International over off-spec marine fuel
Related: MPA completes investigations into bunker fuel contamination; temporary suspends Glencore’s Bunkering Licence
RelatedMPA investigation traces contaminated bunker fuel back to source at Port of Khor Fakkan
RelatedMPA: Glencore and PetroChina supplied contaminated bunkers to about 200 ships in the Port of Singapore

 

Photo credit: Manifold Times
Published: 26 September, 2022

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Alternative Fuels

SMW 2025: Singapore to launch new standard for electric harbour craft this week

MPA and Enterprise Singapore will launch the Technical Reference 136 to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft, says minister.

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SMW 2025: Singapore to launch new standard for electric harbour craft this week

Minister of State for Transport Murali Pillai on Monday (24 March) said Singapore will launch a new standard for electric harbour crafts this week as part of Maritime and Port Authority of Singapore’s (MPA) efforts in facilitating decarbonisation for domestic harbour craft to achieve the republic’s national target of net-zero emissions by 2050.

“MPA and Enterprise Singapore will launch the new Technical Reference 136 this week to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft,” Murali said during his speech at the opening ceremony of the Singapore Maritime Week 2025 (SMW 2025). 

“This will enhance the safety and interoperability of electric harbour craft charging infrastructure.”

This is one of the initiatives MPA is undertaking to prepare for the bunkering of alternative marine fuels and decarbonising Singapore’s domestic maritime sector.

The minister said Singapore is taking steps to support the use of various fuels by the industry and position Singapore as a leading bunkering hub for alternative fuels.

“Over the past two years, we have supported trials of alternative fuels such as ammonia and methanol. These have contributed to the development of new technical references and IMO guidelines to enable the safe and efficient use of these marine fuels,” he said.

“MPA and Enterprise Singapore published the new Technical Reference 129 on Methanol Bunkering earlier this month, and we plan to launch a new standard for ammonia bunkering later this year.”

He added MPA has also recently allowed licensed bunker tankers to carry and deliver biofuels up to B30. 

“Pilots for up to B100 are ongoing, and we welcome bunker suppliers to engage in these pilots,” he said.

At the opening ceremony of SMW 2025, Senior Minister Lee Hsien Loong, together with Murali, also launched Singapore’s first Maritime Digital Twin, an advanced simulation model developed by MPA in partnership with the Government Technology Agency of Singapore (GovTech) that integrates real-time data to enhance decision-making and improve management of maritime operations in Singapore waters.

Murali said the digital twin will integrate data from different sources and provide a platform for information sharing. This will enable the development of tools to optimise port efficiency and reliability above, at and below the sea surface.

“For example, the digital twin will enable scenario simulations and dispersion modelling, which can inform standard operating procedures for the safe bunkering of alternative fuels such as methanol and ammonia,” he said.

The minister added MPA will roll out the digital twin to pilot users later this year, before progressive implementation for the wider industry. 

“In future, we can extend this to the global maritime ecosystem through our Green and Digital Shipping Corridors with other countries and ports,” he said. 

Related: Singapore-registered bunker tankers can transport up to B30 biofuels from 7 March
Related: Singapore releases new standard on methanol bunkering, gears up for multi-fuel future

 

Photo credit: Maritime and Port Authority of SingaporePublished: 24 March, 2025

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Alternative Fuels

TFG Marine welcomes first of four ‘L’ series IMO type II bunkering tankers of Consort Bunkers

TFG Marine to operate Consort Bunkers’ bunkering tanker “Pearl Lavender”, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, at Singapore port from April onwards.

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TFG Marine welcomes first of four 'L' series IMO type II bunkering tankers of Consort Bunkers

Global marine fuel supply and procurement firm TFG Marine on Friday (21 March) said it attended the delivery ceremony of bunker tanker Pearl Lavender at China Merchants Jinling shipyard in Nanjing. 

The IMO type II chemical bunkering tanker newbuilding is amongst others under long-term time charter from Singapore-based bunker supplier and logistics services provider Consort Bunkers Pte Ltd (Consort). 

"This state of the art vessel, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, will be operational at the Port of Singapore from April 2025, further advancing our product offering to our client base in the APAC region," said TFG Marine. 

"As the first of four barges in this order, this investment builds on our commitment to low-carbon fuel bunkering infrastructure, reinforcing our vision for a multi-fuel future. 

"With methanol, biofuels, ammonia, and other alternative fuels playing an increasingly significant role alongside traditional marine fuels, we continue to support the industry's transition towards cleaner energy solutions."

Manifold Times previously reported that Consort first contracted six ‘L’ series 6,500 dwt IMO Type II bunker tankers with China Merchants Jinling Shipyard (Nanjing) Co., Ltd. in April 2023.

The ‘L’ series of bunker tanker newbuildings gained recognition from the China Association of The National Shipbuilding Industry (CANSI) as amongst the Chinese shipbuilding sector’s top 10 innovative vessels for 2024.

Last year, TFG Marine announced the signing of a long-term time charter agreement with Singapore-based bunker supplier and logistics services provider Consort Bunkers for four newbuild bunker tankers.

Related: TFG Marine to charter Consort Bunkers newbuild methanol bunker tankers in Singapore
Related: Consort Bunkers ‘L’ series newbuildings amongst top 10 ‘innovative achievements’ of Chinese shipbuilders
Related: Consort Bunkers ordering up to 20 x IMO Type II bunker tankers in region of USD $350 million

 

Photo credit: TFG Marine
Published: 24 March, 2025

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Sanctions

US OFAC sanctions first Chinese teapot refinery and oil tankers over Iranian links

Shandong Shouguang Luqing Petrochemical and its chief executive officer were added to OFAC’s sanctions list for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil.

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tommao wang on Unsplash

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (20 March) sanctioned a “teapot” oil refinery and its chief executive officer for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil, including from vessels linked to Ansarallah, commonly known as the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL).

Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical), a teapot refinery in Shandong Province, has purchased millions of barrels of Iranian oil worth approximately half a billion dollars. 

Luqing Petrochemical received Iranian oil transported by shadow fleet vessels, some of which have been sanctioned for their role transporting Iranian petroleum linked to the Houthis and MODAFL, including the MEHLE (IMO: 9191711) and the KOHANA (IMO: 9254082). In mid-2022, Luqing Petrochemical was identified as a buyer of Iranian oil associated with the Iranian military and Iranian military forces.

Luqing Petrochemical is being designated pursuant to E.O. 13902 for operating in the petroleum sector of the Iranian economy. PRC national Wang Xueqing serves as the chief executive officer and legal representative of Luqing Petrochemical, and is being concurrently designated pursuant to E.O. 13902 for having acted or purported to act for or on behalf of, directly or indirectly, Luqing Petrochemical. 

“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said Secretary of the Treasury Scott Bessent. 

“The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”

OFAC additionally imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil, comprising part of Iran’s “shadow fleet” of tankers supplying teapot refineries like Luqing Petrochemical. 

Iranian crude oil is transported to teapot refineries via a “shadow fleet” of vessels that usually engage in deceptive shipping practices, including automatic identification system (AIS) manipulation.

OFAC sanctioned eight vessels that constitute part of this fleet, including the Comoros-flagged NATALINA 7 (IMO: 9310147), Panama-flagged CATALINA 7 (IMO: 9310159), AURORA RILEY (IMO: 9181649), and VIOLA (IMO: 9254915), San Marino-flagged MONTROSE (IMO: 9281695), Barbados-flagged VOLANS (IMO: 9422988) and BRAVA LAKE (IMO: 9232876), and the currently unflagged TITAN (IMO: 9293741).

 

Photo credit: tommao wang on Unsplash
Published: 24 March, 2025

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