Introduction — Why Most Buyers Misinterpret SGS and Lose Millions

In petroleum trading (EN590, Jet A1, D6, Crude, LPG, LNG), SGS reports determine:

• Whether the product meets specification

• Whether the deal continues or collapses

• Whether title transfers

• Whether payment (MT103/LC) is released

• Whether the buyer can resell or ship legally

Yet 90% of buyers do not know how to read SGS properly.

They only look at:

• Density

• Sulfur

• Flash point

But real professional traders analyze:

• Temperature corrections

• Density @ 15°C vs observed density

• Water content

• Contamination markers

• CFPP (Cold Filter Plugging Point)

• Metals / additives

• Sediment

• Microbial presence

• Kinematic viscosity

• Actual vs contractual parameters

• Whether results are terminal-verified

This article will teach you everything a refinery-level trader checks inside an SGS report—so you never get manipulated, scammed, or misled again.

SECTION 1 — Understanding the SGS Report: What It Actually Is

1.1 SGS Is the World Standard for Q&Q (Quantity & Quality)

SGS is the global benchmark for independent petroleum inspection.
When you receive an SGS report, you’re seeing:

• Laboratory certification

• Terminal-derived measurements

• Legal evidence for quality

• Basis for commercial settlement

• Proof for payment release

• Anchor document for title transfer

SGS is accepted in all major terminals:

• Rotterdam

• Fujairah

• Hou…

• Jurong

1.2 The Two Parts of Every SGS Report

A real SGS report always includes:

1. Quantity Section (Q)

• Ullage / innage

• Temperature

• Observed volume

• Density @ observed

• Density @ 15°C

• Correction Factor (CTL/CPL)

• Net Standard Volume

2. Quality Section (Q)

Grade-specific tests such as:

• Sulfur content

• Flash point

• Water %

• Viscosity

• Aromatics

• Contaminants

• Freeze point (Jet A1)

• Pour point (diesel)

Most amateurs only read the second part.

Professionals read both as one legal instrument.

1.3 Why “Looking Only at Density” Is a Red Flag

Many inexperienced traders say:

• “Density is correct, so product is good.”

• “SGS matches spec, so we proceed.”

But a professional trader checks:

• Measurement basis

• Temperature variation

• Consistency with port/refinery grade

• Whether sulfur + aromatics combination matches grade

• Whether water + sediment + contamination meet contract annex

This is where fake SGS reports fail instantly.

SECTION 2 — How to Read an SGS Report Like a Professional (A–Z Breakdown)

Below is the complete technical interpretation of each SGS parameter.

2.1 Density (Observed & @ 15°C)

What buyers look at:

• Whether density matches EN590 spec (820–845 kg/m³).

What professionals look at:

✔ Density @ 15°C (reference base)
✔ Change between observed and corrected density
✔ Consistency with refinery source
✔ Variation that indicates contamination

If observed density significantly differs from corrected density → heating/cooling manipulation or product blending.

2.2 Sulfur Content

EN590 requirement = 10 ppm max.
Jet A1 = 3,000 ppm max, typically < 500 ppm.

Professional analysis:

• High sulfur = off-spec

• Too low sulfur (<4 ppm) suggests FAME blending

• Sulfur patterns indicate refinery origin; mismatch reveals fraud

2.3 Flash Point

EN590 minimum flash point: > 55°C
Jet A1: 38°C minimum

Professional interpretation:

• Low flash point → contamination with lighter fractions

• High flash point → product aged or oxidized

2.4 Water & Sediment

Water must be ≤ 200 mg/kg for EN590; Jet A1 must be virtually dry.

Professionals check:

• Water in mg/kg vs volume%

• Microbial contamination indicators

• Sediment levels showing pipeline contamination

2.5 CFPP (Cold Filter Plugging Point)

Critical for cold regions.

EN590 CFPP depends on climatic class:

• Class A: +5°C

• Class F: –20°C

• Class 0 to Arctic grades vary accordingly

Professional interpretation:

CFPP must match contract grade + destination climate.

CFPP mismatch → product is not suitable for destination.

2.6 Viscosity

Viscosity issues = contamination or blending with heavy fractions.

Professionals detect:

• Thicker product = contamination or aging

• Lower viscosity = kerosene infiltration

2.7 Appearance (Visual Check)

Professionals never ignore:

• Color

• Cloudiness

• Suspended solids

• Layering

• Odor

A simple visual discrepancy exposes 70% of fake SGS documents.

2.8 Remnant Additives (FAME, Lubricity, etc.)

FAME % must be within spec (<7%).
High FAME in Jet A1 = catastrophic contamination.

2.9 Metals & Contaminants (Jet A1)

Jet A1 checks for:

• Sodium

• Potassium

• Calcium

• Lead

• Fuel lubricity

• Freeze point

These are crucial for aviation safety.

2.10 Compare SGS vs Contract Specification Annex

Professionals overlay the SGS values onto the contract’s technical annex.

If any single value is out of tolerance → product is non-compliant.

SECTION 3 — NNRV Expert Analysis: The Hidden Details Amateurs Always Miss

3.1 The SGS Date & Time Must Match Tank Farm Log

Fake SGS reports often:

• Have wrong dates

• Mismatch terminal timestamp

• Use non-existent tank numbers

Check SGS date vs:

• DIP test

• DTA issuance

• Pumping schedule

• Tank movement logs

3.2 SGS Location Verification

A real SGS report always contains:

• Terminal name

• Tank number

• Sample point

• Inspector name

• Certificate number

Missing = fraudulent.

3.3 Serial Number Traceability

SGS report numbers are traceable via SGS internal system.

NNRV verifies serial numbers to eliminate recycled SGS.

3.4 “Perfect” SGS Values Are a Red Flag

Example:
SGS shows exactly perfect density, sulfur, flash point and appearance.

Real SGS always has natural variation.

Perfect numbers → fabricated.

3.5 Documentation Chain Verification

Professional traders verify:

• DTA → DIP → Q&Q → SGS

• All must align sequentially

• All must match tank farm records

If one document doesn’t fit → fake seller.

SECTION 4 — Step-by-Step Guide: How to Analyze an SGS Report in 10 Minutes (Professional Workflow)

Step 1 — Authenticate the SGS certificate number

NNRV or SGS portal.

Step 2 — Check tank farm and terminal details

Ensure all identifiers match TSA/DTA.

Step 3 — Verify density @ 15°C

Should match contract grade.

Step 4 — Check sulfur first (always)

Disqualifying parameter.

Step 5 — Compare CFPP to contract grade

Cold-region buyers: critical.

Step 6 — Verify flash point and viscosity

Indicate contamination.

Step 7 — Validate water/sediment

Aging or contamination risk.

Step 8 — Compare with contract’s technical annex

Every value must be within tolerance.

Step 9 — Confirm inspector signature & seal

Fake SGS fails here.

Step 10 — Reconcile SGS quantity with terminal logs

Quantity must match DIP test.

SECTION 5 — Buyer & Seller Questions (20 Key Q&A)

10 Buyer Questions

1. How do I know an SGS is real?

2. Can sellers fake SGS?

3. Does SGS guarantee product existence?

4. Should I accept non-SGS labs?

5. What if SGS is slightly off-spec?

6. Who pays for SGS?

7. Does SGS allow immediate title transfer?

8. Are digital SGS copies accepted?

9. Can SGS be used for L/C negotiation?

10. Can NNRV verify SGS for me? (Yes)

10 Seller Questions

1. How do I avoid buyers arguing SGS values?

2. Should I provide SGS before POF? (No)

3. What if buyer disputes Q&Q?

4. How to request SGS re-test?

5. Does SGS release POP?

6. How to avoid DIP-test manipulation?

7. Can SGS be used for collateral?

8. How to manage multiple SGS rounds?

9. Does SGS expire?

10. Can NNRV coordinate SGS on my behalf? (Yes)

SECTION 6 — Why SGS Is Recognized Globally

SGS complies with:

• ISO/IEC 17025 laboratory accreditation

• ASTM / EN petroleum standards

• ICC Incoterms 2020

• Basel III documentation standards

• FATF anti-fraud protocols

• European EN standards for EN590

• DEF STAN & ASTM D1655 for Jet A1

This makes SGS the global reference for:

• Trade settlement

• Bank payments

• Title transfer

• Legal evidence

• Dispute resolution

SECTION 7 — Professional CTA

📌 Need a Professional SGS Verification Before You Commit to a Deal?

NNRV Trade Partners provides:

• SGS authentication

• Technical analysis

• Tank & terminal validation

• DIP/Q&Q coordination

• POP verification

• Anti-fraud inspection of documents

• Full buyer or seller protection in EN590 & Jet A1 deals

📩 info@nnrvtradepartners.com
🌐 www.nnrvtradepartners.com

We ensure your SGS report is real, compliant, and aligned with contract specifications.

Mini FAQ (5 Key Questions)

1. Can SGS be forged?
   Yes — most fake sellers use recycled SGS.

2. Does SGS confirm ownership?
   No — only quality/quantity.

3. Can I verify SGS directly with SGS?
   Yes — NNRV can assist.

4. Does SGS guarantee no contamination?
   Only within test scope.

5. Do banks accept SGS for payment?
   Yes — as supporting evidence.

Why Choose NNRV Trade Partners?

• Expert SGS & Q&Q interpretation

• Institutional-level compliance

• Full refinery & terminal verification

• Anti-fraud due diligence

• Global petroleum expertise

• Trusted by serious buyers & sellers