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The Maritime and Port Authority of Singapore (MPA) confirmed on Wednesday that it will not be renewing the bunker supplier licences of two of last year's top 10 suppliers - Universal Energy Pte Ltd and Panoil Petroleum Pte Ltd - when they expire on August 31.

Additionally, the bunker craft operator licence of Universal Energy will not be renewed, the MPA confirmed.

As a result, both companies will no longer be allowed to operate as a bunker supplier and bunker craft operator in Singapore.

Explaining the reason for not renewing Panoil's supplier licence, the MPA said that the company had made unauthorised alterations on the pipelines of their bunker tankers and had accumulated demerit points for not complying to bunkering procedures.

The news comes just over two weeks since the MPA revoked the bunker craft operator licence of Panoil after checks revealed that there had been unauthorised alterations made on the pipelines of the bunker tankers between the mass flow meter (MFM) and the flow boom on board five tankers that had been temporarily suspended in March.

Universal Energy Pte Ltd, meanwhile, was said to have accumulated demerit points for the delivery of "severely aerated" fuel, as well as stoppages during bunkering operations.

"With the demerit points accumulated, Panoil Petroleum Pte Ltd and Universal Energy Pte Ltd have failed to be accredited under the Accreditation Scheme for Bunker Suppliers. This is a key requirement for the renewal of bunker licences under the terms and conditions of the licences," the MPA said.

Demerit points

Jointly developed by MPA and the Singapore Shipping Association and implemented on June 1, 2003, the demerit points system is part of the Accreditation Scheme for Bunker Suppliers. The scheme aims to recognise good bunker suppliers and deter malpractice in the industry.

Annual renewal of the bunkering licence is subject to bunker suppliers achieving the accreditation qualifications.

In a warning to other companies, the port authority said: "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."

Universal Energy last year rose four places to be ranked as the third-biggest bunker supplier by sales volume in Singapore, whilst Panoil Petroleum was listed tenth.