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INSIGHT: Off-spec issues reveal ‘missing piece’ of Singapore bunker supply chain

Sources explain to Manifold Times the cause of recent supply issues at Singapore port and, more importantly, suggestions to fix this.
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Singapore-based bunker suppliers have been hit by off-spec issues of marine fuel at the port causing cargo loading congestion at terminals. This could be fixed through increased regulation of the entire bunker supply chain, say players familiar with the matter.

The supply chain for bunkering at Singapore port largely depends on arbitrage fuel imported by oil cargo traders/producers which store the product at oil terminals. This cargo will in turn be loaded by bunker suppliers on their bunker tanker at appointed oil storage terminals for deliveries to receiving client vessels.

However, a recent increase of off-spec bunker fuel cases in Singapore have caused players to question the traceability of oil material. Contracts between different terminals and suppliers seen by Manifold Times have indicated fuel quality and quantity measurements by terminals to be final and binding.

The documents suggest terminals having no obligation to attend to off-spec fuel cases after loading cargo onto a bunker tanker.
 
“Legally, the terminals have a ‘get out of jail free’ card and it seems that the traceability of off-spec bunker fuel stops at the bunker tanker,” shares a source adding “it is a ‘take-it-or-leave-it’ situation as bunker suppliers still need the cargo to do business.”

“Bunker suppliers in Singapore typically rely on the Certificate of Quality (COQ) given by the terminal or cargo trader/owner to deliver the bunkers to receiving vessels. However, if there is a problem with the fuel the vessels will come back to suppliers and make a claim against them.

“Suppliers will retest the sample whose seal numbers are indicated on the BDN to ascertain the issue; if it is true they have to arrange for either debunkering, use a fuel additive to make the product compliant, come to a commercial settlement, or report the matter to the Maritime and Port Authority of Singapore (MPA) as a last resort.

"Bunker suppliers don't do blending; they just take the product from terminals and transport bunkers to the receiving ship. What terminals give, suppliers take. We are always on the losing end during off-spec cases."

Meanwhile, an operator in the bunkering industry notes the need for more transparent fuel sampling processes at terminals due to an alleged reluctance by terminals to openly share technical information.

“Terminals say they allow suppliers to witness shore tank sampling, but permission granted is in question. Also, it seems terminals do not reveal the distance from the jetty to shore tank,” he notes, while adding some terminals simply stick to taking samples from their shore tank, instead of the bunker manifold at the jetty or bunker tanker.

According to the operator, the pipeline between a shore tank and jetty can contain between 400 to 800 metric tonnes (mt) of fuel depending on size and distance.

“The amount of oil left in the pipeline represents a significant quantity for a bunker tanker which loads only a few thousand metric tonnes when compared to larger oil tankers; it is also the reason why bunker tankers are more sensitive to leftover fuel (from the previous loading) and need to know more technical details.”

Policies such as TR48, SS600, and SS524, also known as the Standard for Quality Management for Bunker Supply Chain (QMBS), introduced by the Singapore bunkering community further do not protect local physical suppliers of marine fuel from the unregulated oil storage terminal sector.

“SS524 talks about quality supply chain so effectively this should also involve onshore oil storage terminal; if SS524 was stretched to the shore terminal sector these off-spec bunker fuel cases may not occur,” he says.

“Shipowners, as bunker buyers, don’t care where the fuel source is from and go after suppliers during an off-spec situation; the MPA, which licenses bunker suppliers, also go after suppliers as well as they can’t go after the oil terminals because they cannot regulate terminals or cargo players.

“If SS524 included the terminals sector, the bunkering industry can at least obtain proper sampling from the loading manifold near the bunker tanker where oil terminal rep and crew can witness. Today, most of the loading sample given to bunker tankers are not witnessed by crew. This is a big problem and challenge.”

The off-spec issues, meanwhile, has left certain Singapore oil terminals not being able to offer compliant cargoes. This has led to bunker suppliers contracted to the non-operating facilities heading to other oil terminals to load cargoes, creating a chain effect leading to terminal congestion.

A survey conducted by Manifold Times found at least half a dozen off-spec bunker cases suffered by Singapore suppliers due to either cat fines or low flash point parameters. The total volume of off-spec fuel was estimated to be at least 20,000 mt.

"This ultimately puts Singapore at risk and a disadvantage because the quality of bunkers coming from the state country is questionable,” says a respondent to the survey.

“We are approaching 2020 and most of the low sulphur fuel oil (LSFO) are blended products; so how are we going to assure the shipping industry that this problem will not come to existence come 2020?" 

Published: 26 April, 2018
 

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Methanol

China: Chimbusco completes bunkering op with domestically produced green methanol

Chimbusco delivered 1,000 mt of domestically produced green methanol bunker fuel to “COSCO Shipping Yangpu”, China’s first 16,000 TEU methanol dual-fuel container ship, from 11 to 12 July.

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July 17, 2025

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China: Chimbusco completes bunkering op with domestically produced green methanol

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) on Monday (14 July) said it successfully completed a green methanol bunkering operation for COSCO Shipping’s first methanol-dual-fuel container vessel at Shengdong Terminal in Yangshan Port. 

Chimbusco delivered 1,000 metric tonnes (mt) of domestically produced green methanol fuel to COSCO Shipping Yangpu from 11 to 12 July. 

COSCO Shipping Yangpu is the first methanol-dual-fuel container vessel invested and built by COSCO Shipping Group. The company previously deemed the vessel China’s first 16,000 TEU methanol dual-fuel container ship. 

 With an overall length of 366 meters and a beam of 51 metres, it has a maximum container capacity of 16,136 TEUs. 

The vessel employs an advanced dual-fuel propulsion system that enables flexible switching between methanol and traditional fuels. When using green methanol as fuel, it significantly reduces carbon emissions and pollutant discharges during operations, injecting strong impetus into the green transformation of China’s shipping industry.

“This green methanol bunkering operation, jointly completed by COSCO Shipping Lines, CHIMBUSCO, and SIPG Energy Shanghai, represents another proactive exploration by CHIMBUSCO in the field of green methanol bunkering at Shanghai Port,” Chimbusco said.

“It also marks another significant step by COSCO Shipping Group in advancing the green and low-carbon transformation of the shipping industry and integrating the entire methanol supply chain.”

“As a leading domestic marine fuel supplier, CHIMBUSCO actively responded to shipowners’ demand for green methanol bunkering and worked closely with COSCO Shipping Lines, SIPG Energy Shanghai and other entities to develop a detailed supply plan and emergency response plan in advance, in accordance with relevant bunkering standards for marine methanol fuel.”

Manifold Times previously reported Chimbusco completing a methanol bunkering operation of the same vessel in Shanghai on 11 May. 

COSCO SHIPPING YANGPU was supplied approximately 900 mt of methanol marine fuel by Chimbusco at Pier 1 of COSCO Shipping Heavy Industry. 

Related: Chimbusco completes bunkering op of China’s first 16,000K TEU methanol DF boxship
Related: COSCO Shipping names China’s first 16,000 TEU methanol dual-fuel container ship

 

Photo credit: Chimbusco Dalian
Published: 17 July 2025

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Methanol

Shanghai Electric starts producing first batch green methanol bunker fuel with new plant

New batch of green methanol will soon arrive at Shanghai Port and be delivered to CMA CGM to enter the international market as a marine fuel.
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July 17, 2025

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Shanghai Electric starts producing first batch green methanol bunker fuel with new plant

Shanghai Electric on Thursday (17 July) announced its Jilin Taonan Green Methanol Project, China’s first facility to fully integrate wind-to-hydrogen with biomass gasification, is now producing its first batch of ISCC-EU certified green methanol.

This batch of green methanol will soon arrive at Shanghai Port and be delivered to CMA CGM to enter the international market as a marine fuel.

The company said the milestone event marked a major national breakthrough in the field of green hydrogen-based fuels. 

Shanghai Electric will use this project as a catalyst to build a world-leading, full-industry-chain platform for green fuels, to accelerate the development of an integrated industrial ecosystem encompassing green energy, green hydrogen, green methanol and green applications.

The company will continuously improve new energy power generation, water electrolysis for hydrogen production, biomass gasification, carbon capture, green ammonia, and to promote the large-scale application of green fuels in shipping, aviation, chemical industry and other fields.

At a ceremony, Cai Dong, member of the Standing Committee of the Jilin Provincial Party Committee and Executive Vice Governor, launched the start of production of the fuel. 

As the first large-scale commercial green methanol project in China, the Taonan project has an annual production capacity of 50,000 metric tonnes in the first phase.

“It is the first green methanol project in China to pass the EU ISCC full-process certification and to market to the international market,” the company said. 

 

Photo credit: Shanghai Electric
Published: 17 July 2025

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Business

Singapore-based Seatrium secures USD 400 mil sustainability-linked revolving credit facility

Credit facility will significantly contribute to Seatrium’s long-term goals of achieving its ESG targets, further bolstering its commitment to sustainable development in the offshore, marine and energy sector.
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July 17, 2025

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Singapore-headquartered marine engineering firm Seatrium on Tuesday (15 July) said its wholly-owned subsidiary Seatrium Financial Services Pte. Ltd. (SFS) has successfully secured a USD 400 million sustainability-linked revolving credit facility with United Overseas Bank (UOB).

This credit facility, anchored in sustainability-linked principles, aligns with Seatrium’s Sustainable Finance Framework and includes revolving credit features which will strongly enhance the Group’s liquidity and financial flexibility. It will significantly contribute to Seatrium’s long-term goals of achieving its Environmental, Social, and Governance (ESG) targets, further bolstering its commitment to sustainable development in the offshore, marine and energy sector.

Dr Stephen Lu, Seatrium’s Chief Financial Officer, said, “Our continued partnership with UOB marks an important milestone in advancing our financial agility and deepening our commitment to environmental stewardship. By linking our financing framework to clearly defined sustainability targets, we are not only reinforcing accountability but also embedding climate-conscious principles into our capital strategy. This alignment will actively support our decarbonisation goals and longterm value creation.”

Ms Cindy Kong, Managing Director of Group Corporate Banking at UOB, said: “As the global energy transformation accelerates, sustainability-linked financing is playing a crucial role in driving the shift toward decarbonisation. We are proud to partner Seatrium in championing forward-looking initiatives within the global renewable energy segment. Together, we aim to foster innovation while paving the way for responsible and sustainable business growth globally.”

Since 2023, Seatrium has successfully secured over SGD 3 billion in sustainability-linked loans and green financing, further establishing itself as a global provider of sustainable engineering solutions for the offshore, marine, and energy sectors. 

“The Group is steadfast in its commitment to fulfilling its Sustainability Vision 2030, which is centred on empowering clients to minimise their carbon footprints through energy-efficient and environmentally sustainable vessels and offshore platforms.”

 

Photo credit: Scott Graham
Published: 17 July 2025

 

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