Business

MBA and MASA sign MoU to boost bunkering and trade activities in Malaysia

MoU, effective for three years, is expected to help contain outflow of funds by prioritising local bunkering players; it will also address illegal activities in local bunkering and shipping scene.

Published

2 years ago

May 5, 2023

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Malaysia Bunkering Association (MBA) on Friday (5 May) inked a Memorandum of Understanding (MoU) with Malaysia Shipowners’ Association (MASA) that will promote employment of local vessels and provide more opportunities for Malaysian players in bunkering and trade activities.

The exclusive collaboration, effective for three years, is expected to help contain the outflow of funds by prioritising local bunkering players. It will also address illegal activities in the bunkering and shipping scene.

The MoU was signed at an event graced by Minister of Transport Anthony Loke Siew Fook, attended by Manifold Times.

Under the MoU, the signatories will share information about their registered members upon request as well as share latest news or regulations pertaining to the Malaysian marine and the International Maritime Organisation. In addition, both MBA and MASA will collaborate to work with relevant authorities to avoid any redundancies in their pursuit of improvement for the shipping and maritime industries.

Malaysia Bunkering Association Chairman Tan Sri Mohd Bakri Mohd Zinin, said: “We are delighted to have YB Anthony Loke Siew Fook, the Minister of Transport, for witnessing this significant event today. We hope to work closely with the government as we strive to collectively achieve Malaysia’s aspiration to become a major maritime nation.”

“With the continued growth in domestic trade activities, the Malaysian bunkering landscape has a bright future ahead. Hence, the collaboration with MASA is necessary in order to ensure that local vessel owners are the ultimate beneficiaries of the robust future demand. We also hope to jointly contribute to tackling illegal activities affecting the maritime industry.”

Malaysia Shipowners’ Association Chairman Mr. Mohamed Safwan Othman, said: “I am optimistic that this collaboration between MASA and MBA would allow us to jointly develop feasible business opportunities for local players. This is vital in furthering strengthening the local maritime scene, particularly bunkering and shipping services.”

“As an industry body that has been around for more than four decades, MASA can contribute significantly by advising on industry best practices. Our strong and long-built relationship with relevant authorities will also benefit this MASA-MBA collaboration. We hope that through this tie-up, challenges and risks faced by Malaysian shipowners’ can be mitigated for better growth ahead.”

In his opening speech at the event, Mr. Mohamed Safwan Othman said bunkering is one of the important activities in ensuring the shipping industry continues to function optimally.

“This matter was noted in the Review of Maritime Transport 2022 from the United Nations Conference of Trade and Development (UNCTAD) which recorded the value of Very Low Sulfur Fuel Oil (VLSFO) above USD 1,000 per tonne in the middle of 2022, with an increase of more than 160% from June 2022. This increase is due to increased demand from the industry following the COVID-19 pandemic,” he said.

Seeing the great potential of the local bunkering industry, he urged the government to take proactive steps in ensuring that Malaysia becomes the destination of choice for bunkering to further boost the effectiveness and competitiveness of Malaysian ports.

“With Malaysia's strategic position on the world's busiest shipping route, the Malacca Strait, Malaysia has a golden opportunity to grab market share in the region,” he added.

“Recognising this opportunity, industry players, especially ship owners, need a conducive policy, not only for bunkering, but for all Malaysian flag ship owners who are lagging behind. Until 2022, Malaysia has fallen two steps behind with its fleet size with a record of over 9 million deadweight (dwt) only, compared to Singapore with a record of 130 million dwt, Indonesia with 23 million dwt and Viet Nam which has surpassed Malaysia in 2022 with a record of 12 million.”

For the purpose of implementing the collaboration as provided under the MOU signed today, both MBA and MASA have agreed that the detailed terms and conditions of the collaboration will be determined in the Definitive Agreement.

Established in 2021, MBA is founded by a group of like-minded Malaysian physical bunkering suppliers to improve the standards of bunkering within the Malaysian ports. MBA strives to encourage co-operation within the industry and also organises activities to attract customers to take bunkers in Malaysian ports.

Meanwhile, MASA is the only national industry organisation representing shipowners in Malaysia. Founded in 1976, MASA has a central role to play in the development of the shipping industry in the country, thanks to its strong rapport with relevant government agencies such as the Marine Department and the Maritime Division in the Ministry of Transport.

Photo credit: Manifold Times
Published: 5 May, 2023

Business

Shell MGO bunker heist: Bunker clerk pleads guilty to helping Sentek acquire misappropriated fuel

Wong Wai Meng, who received more than USD 286,000 from Sentek Marine & Trading for his assistance, pleaded guilty to 12 counts of intentionally helping the firm acquire the misappropriated marine gas.

Published

7 hours ago

December 2, 2024

Admin

A bunker clerk, Wong Wai Meng, who received more than USD 286,000 (SGD 384,681) from Singapore-based Sentek Marine & Trading (Sentek) for his assistance, pleaded guilty to 12 counts of intentionally helping the company acquire misappropriated marine gas oil, The Straits Times reported on Friday (29 November).

The 58-year-old Singaporean was employed at the Sentek when he assisted in acquiring more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million).

Wong committed the offences over 46 occasions between August 2014 and December 2017.

Wong is among the three bunker clerks previously employed by Sentek, who were charged for offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Prevention of Corruption Act (PCA).

Another bunker clerk among the three charged, Wong Kuin Wah, 61, was sentenced to seven years and six months’ jail on 18 November for his role in misappropriating more than 27,000 tonnes of gas oil worth around USD 12.8 million (SGD 17.2 million).

The third individual who was charged, Boo Pu Wen, reportedly passed away in July 2023 and had his charges abated following his death, meaning Boo’s court proceedings over his 19 charges at the time came to an end.

Former Shell employees, who were key members of a group who dishonestly misappropriated fuel from Shell Pulau Bukom, were sentenced to jail in court earlier.

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Photo credit: Katrin Bolovtsova
Published: 2 December, 2024

Biofuel

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

Fingerprinting identifies feedstock origins of FAME-based biofuels used in shipping industry; can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity.

Published

7 hours ago

December 2, 2024

Admin

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

The Global Centre for Maritime Decarbonisation (GCMD) on Monday (2 December) released its latest report, presenting a new technique that creates a fingerprint for Fatty Acid Methyl Esters(FAME) bio bunker fuels.

This fingerprint identifies the feedstock origins of the FAME-based biofuels used in the shipping industry.

GCMD said FAME fingerprinting is needed as the shipping sector is increasingly using biofuels, such as FAME, to reduce its GHG emissions. With that, concerns have arisen regarding the legitimacy of biofuels and whether they are truly sustainable.

Industry bodies are seeing a rising number of cases mislabelling biofuels purported to be made from recycled oils and fats, while suspicions persist that they might be produced from cheaper and less sustainable virgin oils.

“To address these concerns, FAME fingerprinting can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity. By providing a physical validation method that complements existing certification schemes, FAME fingerprinting can help justify the green premium with genuine environmental benefits and safeguard the integrity of marine fuels supply chain,” GCMD said.

FAME fingerprinting is based on the principle that the fatty acid profile of FAME is unique to its feedstock and can be preserved during feedstock transesterification to produce FAME. The "fingerprint" can then be compared against a database of known fatty acid profiles to identify the feedstock origin.

GCMD worked with VPS who modified existing fuel testing methods to carry out sample analyses using a gas chromatograph with flame-ionisation detection, an instrument commonly found in fuel test laboratories.

The analysis takes about an hour, comparable to the turnaround time for current marine fuel quality testing in the supply chain.

“We have tested this method on a variety of FAME samples from different suppliers, including virgin oils, used cooking oils, palm oil mill effluent, beef tallow and food waste and were able to identify the feedstock origins for each sample,” GCMD added.

Manifold Times previously reported Captain Rahul Choudhuri, President, Strategic Partnerships at marine fuels testing company VPS, forecasting the use of finger printing technology today will likely establish a blueprint of how future alternative bunker fuels’ feedstocks are authenticated.

Captain Choudhuri said this when he gave an update of VPS’ biofuels finger printing trials with GCMD.

Note: The full report, titled ‘Rapid forensic analysis of FAME-based biofuels: Potential use of its fingerprint as a fraud detection tool’, can be downloaded here.

Photo credit: Global Centre for Maritime Decarbonisation
Published: 2 December, 2024

Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

Published

7 hours ago

December 2, 2024

Admin

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power.

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do.

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Photo credit: PLAGEN
Published: 2 December, 2024