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Magnets on Meters: Director of Urban Energy to serve 34 months’ imprisonment over bunkering offences

Director handed industrial strength magnets to cargo officers of Southernpec 6 and Southernpec 7 and provided instructions on where to place the magnet on the MFM, according to court documents.
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A Judge at the State Courts of the Republic of Singapore on Friday (25 June) issued the Director of Urban Energy Pte Ltd a 34-month imprisonment term due to his role in a conspiracy to tamper with the mass flowmetering (MFM) systems on board Singapore bunker tankers Southernpec 6 and Southernpec 7.

Dylan Kek Kah Hui incorporated Urban Energy in July 2018; the company is in the business of running bunkering operations on board bunker tankers.

Kek was formerly employed by Eric Ang Heng Lye of Seahub Energy; Ang on 9 June was issued a 35-month imprisonment term over his involvement in the similar case.

Kek pleaded guilty to 14 charges under s 7(1)(b) read with s 10(1) of the Computer Misuse Act (Cap 50A, Rev. Ed. 2007) (CMA); and (b) 1 charge under s 204A read with s. 109 of the Penal Code (Cap 224, 2008 Rev. Ed.).

Discovery of offences

Court documents obtained by Singapore bunkering publication Manifold Times showed a Maritime and Port Authority (MPA) Port Inspector boarding the Southernpec 7 during a routine patrol on 19 April 2019.

The Port Inspector found a magnet attached to the bunker tanker’s MFM while it was refuelling Sakizaya Ace and subsequently alerted the Police Coast Guard; the authorities later decided to also investigate Southernpec 6 due to it being a sistership of Southernpec 7.

A request by the authorities to have the MFM vendor review data from the bunker metering computer (BMC) on both vessels found at least 66 separate bunkering operations during which the MFM was tampered with.

Summary of conspiracy

In June 2018, Success Energy started running bunkering operations for New Ocean Fuel Pte Ltd which chartered Southernpec 6 and Southernpec 7 for the delivery of marine fuel; Kek was an employee of Success Energy.

Around July 2018, Kek incorporated Urban Energy to take over bunkering operations of the Southernpec bunker tankers for New Ocean.

Kek handed industrial strength magnets to cargo officers of Southernpec 6 and Southernpec 7 and provided them instructions on where to place the magnet on the MFM.

He also advised cargo officers to use tape that had the same colour as the surface of the MFM in order to disguise the use of the magnet on the MFM.

Additionally, Kek taught cargo officers to apply the magnet only after the bunkering process had begun, and to limit the duration of use of the magnet to prevent the discrepancy between the MFM readings and the amount of marine fuel delivered from being too obvious to the buyer vessel.

The purpose of using a magnet to tamper with the MFM is to cause a higher amount of bunker fuel to be recorded on the BMC as having been delivered to the buyer vessel than what was actually delivered; it therefore helped New Ocean to “save” on the bunkers delivered.

Cargo officers of Southernpec 6 and Southernpec 7 would send Kek a text message informing him of the amount of fuel saved through the use of the magnet on the MFM after each bunker delivery.

Investigations reveal that on Kek’s instructions, between October 2018 and April 2019, the cargo officers and an accomplice placed the magnet on the MFM of the Southernpec 6 and the Southernpec 7 on a total of at least 66 separate bunkering operations.

Kek collected at least $40,000 per month from New Ocean for bunker fuel saved through the use of the magnet, in addition to his monthly salary of SGD 25,000 from New Ocean.

After reimbursing part of his commission to Ang of Seahub Energy, Kek, Ang and another accomplice will divide the reminding commission between themselves after deducting commissions to cargo officers.

On average, Kek will pay cargo officers $50 for every metric tonne (mt) of bunkers saved. The cargo officers received at least $4,000 per month with some up to $11,000 per month, in addition to their base salary of $2,500.

“The estimated total value of MFO which was erroneously recorded as having been delivered to the receiving vessels across the 14 proceeded CMA charges is US$121,585.60,” stated the document.

“The estimated total value of the MFO across all 66 CMA charges (including those which have been taken into consideration) is US$336,930.63.”

A summary of the 14 CMA charges is as follows:

CMA Charge Undelivered Fuel to Vessel Value of Undelivered Fuel
01 16.7 mt to Sakizaya Ace USD 7,114.20
02 27.1 mt to Teton USD 11,327.80
03 22.6 mt to Dawn USD 8,859.20
04 13.5 mt to Antarctic USD 4,671.00
05 21.7 mt to Tasos USD 8,202.60
06 21.6 mt to Cronus Leader USD 8,078.40
07 35.5 mt to Angelic Glory USD 15,052.00
08 21.0 mt to Snowy USD 8,386.90
09 21,6 mt to PVT Sapphire USD 8,510.40
10 22.0 mt to Ocean Marvel USD 8,613.00
11 34.7 mt to Ocean Paradise USD 13,533.00
12 10.6 mt to Fortune Glory USD 3,678.20
13 19.8 mt to STI Manhattan USD 8,385.30
14 16.8 mt to Dato Fortune USD 7,173.60

 

The above article is the latest in the series of ‘Magnets on MFMs’ articles written by Manifold Times; earlier stories related to the development are as follows:

Related: Magnets on MFMs: Trial ends with 35-month imprisonment sentence for Director of Seahub Energy
Related: Magnets on MFMs: Trial ends with ten-month imprisonment for Bunker Clerk of “Fragrance”
Related: Magnets on MFMs: Driver posed as Southernpec bunker crew to commit MFM tampering
Related: Magnets on MFMs: Trial starts for former bunker clerk of “Consort Justice”
Related: Magnets on MFMs: First suspect charged over MFM tampering in landmark case
Related: Magnets on MFMs: “Consort Justice” crew pleads ‘not guilty’ to tampering charge
Related: Singapore: Southernpec bunker supplier licence revoked by MPA
Related: Official: MPA revokes Southernpec bunker craft operator licence
Related: Magnets on MFMs: MPA suspends Southernpec bunker craft license
Related: Magnets on MFMs: Case of ‘a few bad apples spoiling the basket’
Related: Magnets on MFMs: Issue a breach of ‘Operational Security’ under TR 48 (updated)
Related: Singapore: Sea Hub Energy exits MPA bunker craft operator list

 

Photo credit: Manifold Times
Published: 28 June, 2021

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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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RESIZED scott graham

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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