Diesel shipment under scrutiny as experts flag irregular fuel checks

A Marshal Islands-flagged vessel, MT Fortitude, on May 14 completed discharging 81,600 metric tonnes of diesel in Mombasa. 

The shipment, among the first fuel consignments with significantly high sulphur content since the government relaxed fuel standards, has raised concerns within the industry over an irregular timeline and mismatched documentation that experts say point to possible mid-sea fuel blending.

Adding to the controversy are claims that the cargo was loaded in April before the government’s contentious decision to lower fuel standards later that month, raising questions about whether the vessel owners had prior knowledge of the policy shift.

MT Fortitude first loaded 16,800 metric tonnes of diesel at an offshore Ship to Ship (STS) transfer area off Yanbu City in Saudi Arabia.

About 10 days later, on April 24, it took on another 64,800 metric tonnes at the King Fahd Port in Yanbu. The same port authority manages both the STS facility and the port. 

While some experts say there is nothing unusual in the loading sequence, the main concern lies in the timing of the final sampling and testing of the cargo, which reportedly took place on April 25, after the Bills of Lading for both consignments had already been issued.

Analysts describe that as an anomaly, noting that fuel testing and the issuance of Certificate of Quality (COQ), which confirms product specifications, should ordinarily precede the Bill of Lading. 

Questionable history

The Bill of Lading, issued by the shipping lines, serves as the final document handed to the cargo owners before a vessel departs, and is typically issued only after petroleum product has been fully pumped into the ship’s tanks. 

The Certificate of Quality (COQ) issued after tests on the MT Fortitude cargo shows a sulphur content of 36mg/kg.

Although Kenya has since relaxed fuel standards and the cargo is now permitted for discharge, both loading and testing were conducted before the government announced the waiver on high sulphur fuel on April 30.  

An independent petroleum expert, who reviewed the vessel’s documentation, described the cargo’s history and integrity as questionable. 

“Why was sampling done on April 25 after loading? What exactly were they sampling?” the expert posed.

“If you have a bill of lading dated April 14 and a Certificate of Quality (COQ) dated April 25, there are serious questions that need answers.” 

The source further noted that the document presented is a “Certificate of Analysis” rather than a standard “Certificate of Quality,” raising concerns that the original load-port COQ may not have been properly issued or could be withheld from oil marketers. The source further pointed out that the load port, Yanbu, is unlikely to produce diesel with a sulphur content of 36mg/kg, noting that the terminal would not typically hold such a blend in its main export storage tanks unless there was a specific tender for that product.

“What may have happened is that during the ship to ship transfer, the cargo received fuel which was of much lower quality,” the source said.

“The load port Certificate of Quality is highly unlikely to show 36mg/kg. The fuel may have been altered, resulting in higher sulphur content. That is serious,” the source added.

The MT Fortitude cargo is among the first consignments of high sulphur fuel imported into Kenya after the country relaxed standards in April.

The government explained that it had lowered the limit from the ultra low sulphur 10mg/kg regime it had recently adopted, citing the need to secure adequate petroleum supplies amid global shortages.

It cited disruptions linked to geographical tensions in the Middle East, including US -Iran hostilities, which have affected refinery output and constrained flows through the Strait of Hormuz, reducing petroleum exports from the Gulf. 

Long timeline

The petroleum expert also noted that the vessel’s physical voyage timeline appeared unusually long. 

The cargo was first loaded on April 14, them completed with a second loading on April 24, before being discharged in Mombasa in May. For a route that typically takes about 10 days, the nearly month-long transit is being flagged as highly irregular. 

The arrival of MT Fortitude has also drawn scrutiny to the government’s waiver on low sulphur fuel requirements.

The Cabinet Secretary for Trade and Industry issued a temporary directive raising the allowable sulphur limits in petroleum imports on April 30.

However, records indicate that MT Fortitude had already completed loading the cargo weeks before the waiver was announced.  

“You have a vessel that loads and only conducts test analysis after loading. This was done before the waiver. Was the waiver preparing us for this? Was the CS making an announcement on account of a cargo that had already been loaded and en route to Kenya?” the source questioned.

“In issuing a waiver, the expectation was that it would apply to future cargoes, not those already loaded. This cargo has a lot of questionable history. The fact that it was loaded before April 30 suggests that certain entities may have had advance knowledge that the country’s strict environmental and fuel quality standards were about to be relaxed.”