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Glencore unit awaits new bunkering vessel amid South African tax dispute
Reuters· 2026-02-24 10:43
Core Viewpoint - Astron Energy, a unit of Glencore, is set to deploy the bunkering tanker Pearl Kate to restore low-sulphur marine fuel supply along the South African coast following the seizure of another vessel by tax authorities, amid increased demand for refueling due to rerouted global shipping [1][2]. Group 1: Company Operations - The Pearl Kate is the third South African-flagged tanker introduced by Astron to recover lost refueling capacity after the South African Revenue Service seized the tanker Essien last March [2]. - The seizure of the Essien was contested in court, with claims that it was improperly declared and failed to pay required value-added tax [3]. - Astron is a leading producer of low-sulphur marine fuels at its Cape Town refinery, and its ability to produce and distribute these fuels is crucial for ongoing operations [6]. Group 2: Industry Context - The legal dispute arises from a broader tax crackdown by the South African Revenue Service in late 2023, which led to the detention of five vessels in Algoa Bay over alleged customs breaches [4]. - The enforcement actions have impacted operations in Algoa Bay, a key offshore refueling point for international shipping, affecting companies like Mercuria, Trafigura, and BP [5]. - The arrival of the Pearl Kate is expected to help rebuild the strained bunkering capacity in South Africa, which has been challenged by increased shipping activity along the Cape route due to geopolitical tensions [1][5].