Inauguration of bunkering service postponed for a fifth time

Sep 12, 2024, 11:23 AM
Vitol, one of the largest companies in the sector, is involved in the business with STO. -- Photo: STO

Vitol, one of the largest companies in the sector, is involved in the business with STO. -- Photo: STO

State Trading Organization (STO) has postponed the inauguration of bunkering services in the Maldives for a fifth time.

STO said today that the service will be inaugurated before the end of this month.

The government first said bunkering services would be introduced in February. But the date was later postponed to July. However, the service did not start in July and a new date was set for August 22.

But Economic Minister Mohamed Saeed said the service could not start because the bunkering vessels had not arrived in the country due to bad weather.

He announced the new date as September 12. But STO said the service will not be inaugurated today and that plans were made to inaugurate it on the first day of fueling.

Meanwhile, one of the two vessels for bunkering has now arrived in the country. STO said the new date for inauguration is September 20.

A media official for STO told Adhadhu that the bunkering service is part of the Maldives Economic Gateway Project.

Although the bunkering service will be provided by the State Trading Organization (STO), most of the essential work needed to launch the service is being carried out by MPL. The work is centered in Haa Alif Uligan island.

The most important work underway in Uligan is the construction of facilities for the army, immigration, customs and port health personnel. This has been completed in August, MPL said.

Vitol, one of the largest companies in the sector, is involved in the business with STO.

Vitol's role in the bunkering business is to supply fuel to STO's bunkers and to advertise the bunkers. Shortly after signing a term sheet with STO, Vitol included the Maldives on its bunkers' map.

According to reports, STO will start the service with two 4,000 metric tonne bunkers. The government says the business will bring in USD 400 million in the first year.

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