Official Statement, Bangchak Clarified Middle East Crude Shipment Following Media Reports on Singapore Stopover
Bangchak clarified Middle East crude shipment recently, explaining that the vessel’s route which included a stop in Singapore—is a standard logistical procedure known as a “co-loading arrangement.” Bangchak Corporation Plc addressed public curiosity by confirming that sharing cargo space is a common industry practice designed to maximize logistics efficiency and reduce transportation costs for multiple global customers.
Strategic Logistics, The Co-loading Arrangement
According to the company, the specific voyage in question involved a vessel carrying crude oil for more than one client. Under the agreed shipping plan, a portion of the cargo was designated for a customer in Singapore.
The vessel followed a strict sequence:
- Discharge in Singapore: Delivering the first portion of the cargo to the designated port.
- Transit to Thailand: Proceeding directly to the Bangchak Sriracha Refinery terminal to deliver the remaining crude.
Bangchak emphasized that this method is an established industry practice, allowing refineries to manage supply chains more sustainably and economically.
Transparency and Government Coordination
Regarding the identity of the other customer, Bangchak stated that such information is “commercially sensitive” and protected by non-disclosure agreements. However, the company maintained full transparency with state officials:
- Government Briefing: All relevant details were provided to Thai authorities from the beginning of the coordination process.
- Ministerial Visit: Senior executives personally briefed the Minister of Energy during a courtesy visit yesterday to ensure the government is fully informed of the operational facts.
What is Co-loading in the Oil Industry?
For readers unfamiliar with maritime logistics, Co-loading (or cargo consolidation) is the practice of filling a Very Large Crude Carrier (VLCC) or Suezmax vessel with oil for different buyers or destinations.
- Efficiency: It significantly reduces the “freight cost per barrel.”
- Environmental Impact: Fewer ship movements lead to a lower carbon footprint for the energy sector.
- Standard Practice: Major global oil firms regularly use co-loading to manage diverse portfolios across Southeast Asian hubs like Singapore and Rayong.
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