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MPA of Singapore Revokes Two Bunker Licences

The Maritime and Port Authority of Singapore (MPA) has revoked the bunker supplier and bunker craft operator licences of Hong Fatt Oil Trading Pte Ltd and Tankoil Marine Services Pte Ltd with effect from 9 February 2015. The two companies are no longer allowed to operate as bunker suppliers and bunker craft operators in the Port of Singapore. As part of MPA's ongoing regulatory efforts to ensure the safety, reliability and quality of bunker supplies in Singapore, routine checks were conducted last year on Hong Fatt Oil Trading Pte Ltd and Tankoil Marine Services Pte Ltd. MPA's separate investigations into the two companies revealed discrepancies and wrongful declarations in the records kept on board their bunker tankers. There were also incidences of transfers of bunkers between bunker tankers that were done without MPA's approval. MPA has therefore decided to revoke the companies' licences as they had breached the terms and conditions of their bunker supplier and bunker craft operator licences. MPA reminds all licensed bunker suppliers and bunker craft operators to adhere strictly to the terms and conditions of their bunker licences. MPA will take firm action against any licensee who has acted in contravention of their licences, including suspending ...

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Reported Instances of Bunker Supplier Non-Compliance

West of England P&I Club issued a loss prevention article regarding reported instances of bunker supplier non-compliance. Operators will be aware that if a bunker supplier provides fuel or documentation that does not comply with MARPOL Annex VI requirements or fails to follow the sampling procedures set out in IMO Resolution MEPC.96(47), the receiving vessel should issue a Note of Protest to the supplier and send copies to the local port state authority, the vessel’s flag administration and the company. A copy should also be retained on board. Under MARPOL Annex VI, Regulation 18.9 there is a requirement for the flag administration to advise IMO of such matters for promulgation to parties to the Convention and IMO members. In response to this obligation IMO has recently published MEPC.1/Circ.851 Implementation and Enforcement of MARPOL Annex VI which contains a summary of the Notes of Protest received by Cyprus and Liberia between 1 July 2014 and 31 December 2014. Almost all of the reported instances involve fuel which, according to the Bunker Delivery Note, contained a permissible amount of sulphur. However, following independent analysis arranged by the shipowner, a higher level of sulphur was found making the fuel non-compliant. Source: West of England ...

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Malmo Port ready for low-sulphur bunkering

The EU's sulphur directive came into force on 1 January. Copenhagen Malmö Port (CMP) is ready to receive vessels that can refuel with low-sulphur marine diesel in a newly-established terminal being built in Malmö and financed by Scandinavian Tank Storage AB (STS) and Copenhagen Malmö Port AB (CMP). The sulphur directive requires all vessels in the SECA area, which includes the North Sea, Baltic Sea and English Channel, to use low-sulphur marine diesel with effect from the start of this year. According to the the regulations, the maximum permitted amount of sulphur in the fuel has been reduced from 1.5 per cent to 0.1 per cent, by weight. To enable vessels to bunker with the new fuel in the region, CMP and STS are jointly investing in the port of Malmö to establish a dedicated bunkering quay with associated terminal. Statoil will be the fuel supplier. "Malmö is strategically located for this type of activity, since more than 40,000 vessels a year pass through Öresund. We are naturally delighted that Statoil has chosen Malmö and ourselves as the strategic location and partner for fuel distribution," says Leif Larsson, CEO of Scandinavian Tank Storage AB. "For CMP, this initiative means great ...

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BIMCO Terms 2015 for bunkers now available

BIMCO developed a new standard bunker contract - the BIMCO Terms 2015.The objective of the BIMCO Terms 2015 is to provide the industry with carefully thought through terms and conditions for the purchase and delivery of marine fuels that are fair to both parties and provide a comprehensive starting point for negotiations. Harmonisation will help bring certainty to these negotiations and assist parties to a bunker contract to manage their risk and reduce the likelihood of disputes occurring. Creating a globally acceptable set of terms and conditions for the purchase of bunkers has been a challenging task, an essential part of which was finding common ground between sellers and buyers while taking into account different regional practices. The BIMCO Terms 2015 is the product of a year-long effort by representatives of sellers and buyers to strike a balance in a bunker purchase agreement. The result is an easy to read, yet comprehensive, boiler-plate contract which provides a solid contractual platform for bunker purchases. You don't have to be a BIMCO member to take advantage of the BIMCO Terms - they are available to anyone in the industry to use. We believe that they cover all the important aspects of a ...

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SSA Joins MPA in Confirming No Disruption to Bunker Supply in Singapore

At an industry dialogue with close to 50 companies from the Singapore Shipping Association (SSA), it was established that there had been no report of disruption to bunker supply and bunkering operations in Singapore.  Co-organised by the Maritime and Port Authority of Singapore (MPA) and SSA yesterday, the participants gathered for updates and discussed ways to minimise any impact on the local bunkering scene following the recent announcements made by OW Bunker A/S.  The attendees were advised to carefully inspect their contractual obligations, and to work closely with their stakeholders to avoid or minimise disruption in their operations.  “The bunkering industry here is a well-regulated one. While I urge my members to seek professional and legal advice as necessary, I also hope that those affected by this event would remain calm and not resort to knee-jerk reactions which may rock the stability and reputation of Singapore’s bunkering industry. My Association will be working closely with MPA to ensure that there would not be any unnecessary disruption in bunker supply and operations here,” said SSA President Mr Patrick Phoon. “This has been a useful session for the shipping and bunkering community to come together to understand the current situation and to ...

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Green light for BIMCO Standard Bunker Contract 2015

Accordinf to BIMCO, it is perhaps surprising that there is at present no industry-wide harmonized set of terms and conditions agreed for one of the most everyday shipping operational activities, the purchase and supply of bunkers. BIMCO announced the Standard Bunker Contract 2015 that was approved for publication at the organisation’s bi-annual Documentary Committee meeting held in Copenhagen on 7 November. The objective of the new BIMCO bunker terms is quite simple – to provide carefully thought through terms and conditions that are fair to both parties and provide a comprehensive starting point for negotiations. Harmonisation will help bring certainty to these negotiations and assist parties to a bunker contract manage their risk and reduce the likelihood of disputes occurring. According to Grant Hunter of BIMCO’s Contracts and Clauses section, “recent events in the bunker industry emphasise more than ever the importance of having a good solid contract in place should anything unfortunate occur. Clearly stating the obligations, responsibilities and liabilities of both parties is fundamental – don’t wait until something goes wrong before discovering that the contract you have agreed is lacking in some important element. The BIMCO terms provide a solid starting point for bunker negotiations and the ...

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IBIA offers MPA Singapore accredited mass flow meter course

The Maritime and Port Authority of Singapore (MPA) has accredited the International Bunker Industry's (IBIA) new Mass Flow Meter course. The course, which is next being held 17-18 November in Singapore, provides in depth information about mass flow meters; how to install and use them and looks at legislative, calibration and accuracy issues. The announcement was made at the IBIA Annual Convention in Hamburg this week. In April this year the MPA was the world's first port authority to introduce mandatory mass flow meter system for its bunker suppliers. Mass flow meters measure the flow rate of fluid and allow for greater efficiency, accuracy and transparency in the bunkering industry. The process of dipping tanks and measuring temperatures and volume to convert to mass calculations are prone to variances, and can lead to inaccurate determination of quantity, which can in turn lead to disputes. The enforcement will ensure the customer receives the quantity they have purchased. IBIA Chief Executive Peter Hall said: "This is the latest in our range of professional training courses for the bunkering industry. Ultimately, the use of mass flow meter will result in a smoother bunker transaction landscape with less commercial disputes, shorter delivery times and a ...

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New measures to enhance Singapore as a premier bunkering port

The Singapore International Bunkering Conference and Exhibition (SIBCON) saw some 1,600 delegates from over 50 countries attend the event's opening ceremony. Organised by the Maritime and Port Authority of Singapore (MPA), SIBCON is in its 18th instalment. Singapore's Minister for Transport, Mr Lui Tuck Yew, presided over the opening ceremony today, held at the Resorts World Sentosa. In conjunction with SIBCON, Minister Lui also officiated the global launch of the Society for Gas as a Marine Fuel (SGMF), a new non-governmental organisation established to promote safety and industry best practices in the use of gas as a marine fuel. This year's SIBCON theme, "Driving Transformation in the Marine Fuel Industry", aptly describes the current industry trends and developments. Addressing an international audience during the opening ceremony, Minister Lui said that the bunkering industry has to grapple with a rather challenging environment. In the face of these challenges, we must look towards the adoption of new technologies and new modes of operation, and seek to transform the bunkering industry such that we can ensure continued growth in a sustainable manner. MPA introduced several new initiatives at SIBCON as part of Singapore's continued efforts to enhance our bunkering processes and prepare the ...

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Bureau Veritas approves GTT’s LNG bunker vessel

GTT announced an AIP (Approval In Principal) from Bureau Veritas (BV) for its bunker vessel, with an especially cost effective design. This AIP follows other recent approvals from several major classification societies for GTT designs for a 2.200m3 bunker barge in the US market and of the REACH4TM, bunker mast. This approval further positions GTT in the progressive adoption of LNG as a fuel for commercial vessels. GTT is capitalizing on its long experience in LNG containment by developing solutions along the whole supply chain dedicated to ship bunkering with LNG. Equipped with Mark III Flex membrane tank design and also fitted with a storage capacity of 1.000m3 MDO (Marine Diesel Oil) as additional bunker fuel for delivery, the 4.000m3 LNG bunker vessel has an improved compact design offering the highest degree of safety in operation. It is particularly well-adapted to perform in congested areas such as narrow channels and ports. "This is a new step for us, recognizing the work done by our team of engineers and designers over a long period", commented Philippe Berterottière, Chairman and CEO of GTT. This new bunker ship will be able to refuel safely client vessels and will be equipped with the REACH4TM ...

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Keppel to perform 2nd FLNG vessel conversion for Golar

Keppel Shipyard announced that it is in the process of finalising contracts with Golar Gimi, a subsidiary of Golar LNG, to perform the conversion of a second Moss LNG carrier, the GIMI, into a Floating Liquefaction Vessel (FLNGV). Earlier on 3 July 2014, Keppel Shipyard was awarded a firm contract by Golar Hilli Corporation (Golar Hilli) to perform the world's first-of-its-type conversion of a Moss LNG carrier, the HILLI, into an FLNGV, and the contract included options for another two similar units. The forthcoming conversion award of the GIMI will mark the exercise of the first of these two options. The work scope for Keppel Shipyard in converting the GIMI is expected to be similar to that for the HILLI. Keppel Shipyard will be responsible for the provision of the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services. It is also expected that Keppel Shipyard's scope will include engaging Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process. Mr Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said, "We are happy that Golar LNG is looking into their second FLNGV conversion, and is ...

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