Singapore suspends Glencore’s bunkering licence for supplying contaminated fuel

THE Maritime and Port Authority of Singapore (MPA) will suspend Glencore Singapore’s bunkering licence for 2 months from Aug 18, said the agency in a statement on Wednesday (Aug 3).

MPA has also asked the bunker supplier to improve its internal procedures to ensure that “prompt action is taken in future” when it becomes aware of, or reasonably suspects, irregularities in fuel quality.

MPA was first notified on Mar 14 this year that a number of ships had been supplied with high sulphur fuel oil (HSFO) containing high concentration levels of chlorinated organic compounds, or COCs (1,2-dichloroethane, tetrachloroethylene) in the Port of Singapore.

The HSFO containing high concentrations of COC was traced back to fuel purchased by Glencore in January and February this year. Part of the blended HSFO was also sold by Glencore to PetroChina International Singapore.

MPA, in an update on Wednesday, said that between Mar 21 and 23, the fuel-oil testing laboratory engaged by Glencore reported that samples from the parcels of fuel oil purchased by the bunker supplier contained approximately 2,000 ppm to 15,000 ppm of COCs.

COCs are not commonly present in bunker fuel, especially at such elevated levels.

MPA’s investigation found that despite this, Glencore continued to supply bunkers blended with the contaminated fuel to vessels in the Port of Singapore from Mar 22 to Apr 1.

In doing so, Glencore contravened the terms and conditions of its bunkering licence, in that it failed to ensure that no bunkers supplied by it were contaminated, MPA said.

Among the 24 vessels supplied with the contaminated fuel from Mar 22 to Apr 1, at least 3 have reported issues with their fuel pumps and engines.

SEE ALSO

MPA traces origin of contaminated bunker fuel, calls for stricter quality tests

200 ships received contaminated bunker fuel from Glencore, PetroChina: MPA

MPA launches probe into bunker fuel contamination at Singapore port

No action will be taken against PetroChina, said MPA. This is because its investigation found that this bunker supplier had stopped delivery of the contaminated fuel “promptly” by Mar 19, when it received its own test results that the fuel it supplied was contaminated. (see Amendment note*)

*Amendment note: A previous version of this story incorrectly stated that PetroChina had stopped delivery of the contaminated fuel promptly by Mar 12, instead of Mar 19.