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August 4, 2022

MPA suspends Glencore’s bunkering license for supplying contaminated fuel

Glencore’s suspension will be effective from 18 August.

The Maritime and Port Authority of Singapore (MPA) has announced a two-month suspension of the bunkering license for Glencore following evidence that confirmed the company had supplied ships with contaminated fuel.

Glencore’s suspension will come into force on 18 August.

The fuel oil testing laboratory engaged by Glencore tested samples from fuel oil parcels delivered to the company between 21 and 23 March.

The results showed that the fuel oil contained high concentration levels of chlorinated organic compounds (COCs), ranging between 2,000ppm and 15,000ppm.

The MPA stated that COCs are generally not present in bunker fuel, particularly not at such high levels.

The authority’s investigation revealed that Glencore continued to deliver bunkers blended with the high COC-level contaminated fuel to vessels in the Port of Singapore between 22 March and 1 April.

By supplying the contaminated fuel, Glencore failed to meet the terms and conditions of its bunkering license in the country.

During the period, Glencore supplied a total of 24 vessels with the affected fuel. So far, three of these vessels have reported issues with their fuel pumps and engines.

MPA suggested that Glencore should enhance its internal procedures to take proper action on reasonable suspects and avoid any irregularities in fuel quality.

Furthermore, MPA’s investigation found that PetroChina stopped supplying the contaminated fuel on 19 March after it secured its own test results showing that the fuel was contaminated with COCs.

For this reason, MPA has decided not to implement any action against PetroChina.

Separately, MPA signed a memorandum of understanding (MoU) with the Port of Rotterdam Authority earlier this week to establish a Green and Digital Corridor for sustainable shipping.

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