SINGAPORE TO ENSURE BUNKERING SECTOR STAYS ROBUST, SAYS ITS TRANSPORT MINISTER

By Massita Ahmad

SINGAPORE, April 20 -- Singapore's priority is to ensure that its bunkering sector remains robust, Transport Minister Khaw Boon Wan said.

“And it is,” he said in his Facebook posting today in reference to the financial woes of Singapore oil trading giant, Hin Leong Trading (Pte) Ltd, and its shipping arm, Ocean Bunkering Services.

“Ocean Bunkering Services is a major player in our bunkering sector. While there is some immediate collateral impact through credit-tightening on other bunkering players, it is manageable,” he said.

Khaw, who is also the Coordinating Minister for Infrastructure, said other existing bunker suppliers have immediately come in to fill the gap.

“It is also fortuitous that MPA (the Maritime and Port Authority) invited bids for new bunker suppliers in December last year.

“We have evaluated the bids and two new suppliers will get their bunkering and craft operator licences today,” he said.

It was reported that Hin Leong, founded in 1963, filed an application for a debt moratorium from Singapore's High Court on Friday.

Meanwhile, in a statement, the MPA announced it has awarded two new bunker supplier licences to Minerva Bunkering and TFG Marine.

The authority also said bunkering services in the Port of Singapore and oil trading remain resilient despite the global COVID-19 pandemic.

Bunker sales in Singapore grew 5.4 per cent to 12.72 million tonnes in the first quarter of 2020 from 12.07 million tonnes a year earlier, it said.

The entry of Minerva Bunkering and TFG Marine will consolidate Singapore’s position as the global bunkering and oil trading hub, the MPA said.

"It brings the total number of MPA-licensed bunker suppliers to 45 in the Port of Singapore," it said.

The MPA said Minerva Bunkering and TFG Marine will also be required to each operate at least two clean energy dual-fuelled bunker barges.

"This will help drive more sustainable bunkering activities in the Port of Singapore," it added.

Singapore's bunker fuel trading sector comprises more than 70 players.

-- BERNAMA