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The damage caused by a fire at a fuel oil storage tank at Tankstore’s Pulau Busing terminal in Singapore is likely to be fully covered by insurance.
Tankstore’s insurers are expected to cover any material losses from the fire, market sources told S&P Platts, and these losses are not likely to affect Singapore’s fuel oil market in a significant way.
The fire, which erupted on Tuesday evening, took six hours before firefighters were able to extinguish it, the Singapore Civil Defence Force (SCDF) said. According to a Facebook post by the SCDF, 31 firefighting vehicles and 128 personnel were involved in the “massive operation” to put out the fire.
The cause of the fire has yet to be determined and investigations are ongoing.
The tank reportedly had a full capacity of 40,000 cubic meters of fuel oil. However, the exact volume of oil lost in the fire has not yet been confirmed. Loading operations at Tankstore have temporarily been diverted to other terminals such as Universal Terminal on Jurong Island.
Fuel oil is a by-product of the crude oil refining process and is commonly used as fuel for ships and electric power plants. Singapore is a major trading hub for fuel oil in the region.
