Joint venture to form a major supplier of marine fuel
Frontline, Golden Ocean to jointly hold 25% in JV
* Trafigura sees JV increasing trading vols, credit accessFreithtwaves has more:
* Operations planned to start in Q3 (Adds detail on Trafigura's bunker trading volume)
OSLO, Aug 13 (Reuters) - Commodities trader Trafigura is joining forces with shipping firms Frontline and Golden Ocean to supply marine fuel ahead of a shake up in regulation which could disrupt delivery and cause prices to spike.
The three companies said on Tuesday the joint venture is expected to start operating in the third quarter, subject to agreement on final terms.
From Jan. 1, International Maritime Organization (IMO) rules will bar ships from using marine, or bunker, fuel with a sulphur content above 0.50% and instead will require them to run on compliant diesel or very low-sulphur fuel oil.
The shift will be seismic for the oil industry, affecting the entire chain from refiners to oil producers as light, sweet crude will be favoured over sour grades that contain more sulphur.
Frontline and Golden Ocean will acquire 15% and 10% interests in the joint venture respectively, while commodity trader Trafigura will contribute its existing physical bunkering activities and own the remaining 75%....MUCH MORE
IMO 2020 could spark more shipping tie-ups with fuel sellers
