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Marine fuel supplier Southernpec's licence revoked by Singapore port authority

Marine fuel supplier Southernpec's licence revoked by Singapore port authority

A Southernpec bunker craft. (Photo: Southernpec)

SINGAPORE: Marine fuel supplier Southernpec's bunkering licence has been revoked with effect from Wednesday (May 29) by the Maritime and Port Authority of Singapore (MPA).

As such, Southernpec will cease to operate as a bunker supplier in the Port of Singapore, said MPA in a media release.

"During a recent enforcement check, MPA found that Southernpec had failed to ensure that its employees comply with the terms and conditions of their licence," the release said.

READ: Singapore port authority strips Pegasus Maritime of operator licence

MPA added that Southernpec employees had engaged in "bunker malpractices", including the use of magnets to interfere with the mass flow meter (MFM) during bunkering operations.

Powerful magnets can distort MFM measurements for delivered marine fuels, making it possible to short deliveries to customers, trade sources have said.

Southernpec's cargo officers also did not record the information in the bunkering documents accurately, MPA said, thus breaching the terms and conditions of its bunker supplier licence.

MPA previously suspended Southernpec's licence on Apr 25.

On May 8, it had revoked Southernpec's license to operate bunker barges following results of the same investigation, but it had allowed the bunker operator to retain its marine fuel supply license until now.

Singapore, the world’s largest marine refueling hub, became the first port to mandate the use of MFMs in 2017, making them compulsory for marine fuel oil bunker barges licensed by the port authority.

Along with a crackdown on short deliveries to bunker fuel customers, the meters have improved transparency for buyers and helped boost Singapore’s status as a refueling port.

Southernpec in 2018 ranked 30th by volume delivered out of 51 marine fuels suppliers, according to MPA.

Source: CNA/reuters/jt(hm)

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