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Houston off-spec VLSFO also found in Singapore

  • Market: Oil products
  • 08/08/23

Contaminated very low-sulphur fuel oil (VLSFO) that was discovered in Houston last month has now spread to additional vessels, including two ships that used off-specification VLSFO in Singapore.

A total of 32 vessels from 17 suppliers are now known to have received contaminated VLSFO from March-May, according to testing firm Veritas Petroleum Services (VPS). That is nearly triple the 11 vessels, all in Houston, that VPS reported last month had received contaminated VLSFO.

Among the vessels identified as having received the off-specification fuel, 14 reported damage to their engines and fuel delivery systems, including 12 ships in Houston — up from 11 last month — and the two vessels in Singapore.

The VLSFO that affected the 14 ships was delivered by four suppliers, VPS reported. When VPS identified the original 11 vessels, it reported that one supplier delivered the contaminated fuel to those ships.

Multiple bunker market sources at the time told Argus that the VLSFO came from Houston-based supplier GCC Supply & Trading.

GCC in July said it supplied only on-specification fuel to its customers. GCC did not immediately respond to a request for comment today.

An additional 18 vessels are known to have received off-specification VLSFO from 13 other suppliers, but those ships have either reported no incidents from using the fuel in question or have provided no feedback on their conditions, VPS said.

A total of 61,494 metric tonnes of the contaminated VLSFO was delivered to the 32 vessels.

The VLSFO contained 3,000-7,000 ppm (0.3-0.7pc) of chemicals, including dicyclopentadiene. These chemicals can make the fuel sticky and damage the fuel injection system.


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