Tag: MGO

SK Trading International has inked six-month contracts with shippers for the supply of very low sulphur fuel oil (VLSFO), beginning from the fourth quarter, according to a company official. VLSFO is considered as an economically attractive option for the shipping industry, in spite of expectations of higher demand for marine gasoil.

A man linked to a case involving 340,000 tonnes of stolen gas oil worth more than $200 million - the largest ever in Singapore - has been jailed for two and a half years. Dang Van Hanh has been jailed after pleading guilty to have received 5,600 metric tonnes of marine gasoil (MGO) stolen from Shell's Pulau Bukom refinery.

The bunkering of ships, which formerly was a relatively low skill and low value activity, has deployed into a highly focused shipboard operation, due to the continuously rising oil price in conjunction with the imperative need for high marine environmental protection.

During a joint operation on 19 February 2019, with the Maritime and Port Authority of Singapore, the PCG arrested six crew members of a craft belonging to a marine service provider and another five crew members of a foreign-registered tugboat for illegal transaction of MGO at the sea off Jurong Island. The 11 men will be charged for criminal breaches.

Mr. Ian Adams has been recently appointed as the Executive Director of the Clean Shipping Alliance 2020 which aims to clarify issues concerning the Exhaust Gas Cleaning Systems and assist in the effective enforcement of the upcoming sulphur cap. Mr. Adams anticipates an increase in global shipping costs overnight from 1 January 2020, highlighting that a postponement of the amendments to MARPOL Annex VI is off the table; therefore, the industry needs to get fully prepared for compliance by the end of 2019.

Seven men got arrested on January 29 for an alleged illegal transaction of 2.7 tonnes of marine gas oil at the sea off Pulau Sudong, Singapore. According to the police, the men were arrested during a joint operation the Maritime and Port Authority of Singapore. Initial investigations showed that the three crew members had allegedly misappropriated 2.7 tonnes of marine gas oil without their company knowing. 

In Damen Shiprepair Dunkerque the work started on the conversion of the trailing suction hopper dredger "Samuel de Champlain" from diesel-electric propulsion to dual-fuel capability combining MGO and LNG. The vessel is expected to be operational by December 2018, and is supported by the EU.

Singapore's coast guard received information, on 4 May, that a foreign-flagged tugboat and a Singapore-flagged vessel were believed to be involved in an illegal sale of MGO at sea, off Sultan Shoal lighthouse. If found guilty, the 15 men onboard these vessels may encounter conviction of a 15-year imprisonment, plus fines. 

American energy major ExxonMobil is launching a mass flow metering system (MFMS) for marine gas oil in Singapore, after the Maritime and Port Authority mandated that all distillates must be delivered via a MFMS from 1 July 2019. The first barge deliveries are set to start in May 2018, the company said.

Global marine fuel costs are likely to rise by 25%, or $24 billion, upon the IMO sulphur cap gets in effect in 2020, Wood Mackenzie consultant said. As explained, the cost will rise as the upcoming regulations will a switch to other fuels, which are low-sulphur but cost more, such as MGO and ultra low sulfur fuel oil.