Singapore to suspend Glencore’s bunkering licence over fuel contamination role

The Maritime and Port Authority of Singapore (MPA) has announced the suspension of Glencore’s bunkering licence for two months, effective August 18th. The move follows an investigation into recent bunker fuel contamination at Singapore port. Cases began to come to light in March this year, with several ships being supplied with high sulphur fuel oil that contained high concentration levels of chlorinated organic compounds.

Tracking down the source of the contamination took some time, but was eventually traced to a batch supplied by Glencore Singapore Pte Ltd (Glencore) and PetroChina International (Singapore).

That fuel oil was traced back to a tanker at the Port of Khor Fakkan, UAE.

The investigation found that “between 21st and 23rd March 2022, the fuel oil testing laboratory engaged by Glencore reported results showing that the samples taken from the parcels of fuel oil Glencore purchased, contained concentrations of COCs that ranged from approximately 2,000 ppm to 15,000 ppm. 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 fuel purchased that was contaminated with high levels of COC to vessels in the Port of Singapore from 22nd March 2022 to 1st April 2022”.

MPA said that, by so doing, Glencore contravened the terms and conditions of its bunkering licence.

There were 24 vessels recorded as having been supplied with the affected fuel by Glencore, between March 22nd and April 1st, and at least three vessels had reported issues with their fuel pumps and engines.

MPA said that it has asked Glencore to improve its internal procedures to ensure that, in future, prompt action was taken when the company became aware of, or reasonably suspected, any irregularity in fuel quality.

Separately, MPA’s investigation revealed that PetroChina had stopped delivery of the contaminated fuel promptly by March 19th, once it received its own test results that the fuel it supplied was contaminated with COC. Therefore, MPA has decided not to take any action against PetroChina.