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Marine fuel trader Scandinavian Bunkering has filed a lawsuit against Malaysian International Shipping Corporation Berhad (MISC) for allegedly breaching a bunker supply contract, Singapore-based The Business Times reports today.

Shipping line MISC, a subsidiary of Petroliam Nasional Berhad (Petronas), allegedly entered into a contract with Marinehub Malaysia on September 16th 2008, according to the writ filed with the High Court.

Under the agreement, MISC is said to have agreed to purchase a total of 102,600 tonnes of fuel oil - 34,200 tonnes per month - between October and December 2008 at a price of US$559.80 per tonne.

Meanwhile, Marinehub also reportedly entered into back-to-back trading contracts with Scandinavian Bunkering for the latter to supply it with the required bunker fuel at $557.50 per tonne. With a margin of $2.30 per tonne, Marinehub was set to earn a profit of $235,980 on the deal.

The writ claims these agreements were entered into with the knowledge of MISC.

According to the writ, however, MISC took delivery of a fifth (about 20,520 tonnes) rather than a third of the total amount during the month of October and then stopped taking shipments after this date.

Marinehub is reported to have assigned all of its rights to Scandinavian Bunkering in November.

Scandinavian Bunkering's claim was filed by Kuala Lumpur-based corporate litigator Tommy Thomas & Co. The company is said to be demanding between US$24 and US$27 million from MISC.

The claim follows media reports last month that Brazilian energy firm Petroleo Brasileiro (Petrobras) S.A. among others, had complained of non-payment for bunker fuel contracted for use by MISC.

MISC denied the allegation saying the claims were “unfounded, unwarranted and without merit”.