First up, Reuters, November 20:
Refiners Across the Globe Increase Output of 2020-Compliant Ship Fuel
Global oil refiners have upgraded processing units and adjusted operations to raise output of low-sulfur residual fuels and marine gasoil (MGO) to prepare for stricter shipping fuel standards that kick in on Jan. 1, 2020.Next up, Reuters, November 21:
The new International Maritime Organization (IMO) rules prohibit ships from using fuels containing more than 0.5% sulfur, compared with 3.5% through the end of December, unless they are equipped with exhaust-cleaning “scrubbers.”
The shipping industry consumes about 4 million barrels per day (bpd) of marine bunker fuels, and the rule changes will impact more than 50,000 merchant ships globally, opening a significant new market for fuel producers.
Below is a summary of how top refiners have prepared.
CHINA
The world’s largest refiner, Sinopec Corp , has started very low-sulfur fuel oil (VLSFO) output at 10 refineries in China, including Zhenhai Refining and Chemicals Co, Jinling Petrochemical Co and Hainan Petrochemical Co....MUCH MORE
Norway’s Equinor Sends Rare Low Sulphur Fuel Cargo to Fujairah
Equinor offloaded a rare cargo of very low-sulphur fuel oil (VLSFO) from Norway last week at UAE’s Fujairah bunkering hub to meet expected demand from stricter ship fuel emission rules, according to trade sources and shipping data.Reuters again, November 20:
The 130,000-tonne cargo has been sold to Saudi Arabia’s Aramco Trading Corp (ATC), said five fuel oil trade sources who declined to be identified due to company policies....MORE
Low Sulphur Fuel Shortages to Detour Vessels in 2020, Panel Says
Shortages of low-sulfur fuel oil could appear at some ports in Africa, South America and Southeast Asia next year, but most major ports around the world will have adequate supplies, panelists at a shipping industry conference said on Wednesday.And from gCaptain itself, November 21:
International Maritime Organization (IMO) standards take effect Jan. 1 that cap the sulfur content of shipping fuel at 0.5% unless vessels use exhaust-cleaning scrubbers. The mandate aims to improve human health by reducing air pollution from sea-going vessels.....MORE
Interview: IMO’s Edmund Hughes Talks IMO 2020
Interview by Paul González-Morgan (Marine Strategy) – Edmund Hughes is Head, Air Pollution and Energy Efficiency in the Marine Environment Division of the International Maritime Organization (IMO), the United Nations specialised technical agency responsible for the regulation of international shipping. A member of the IMO Secretariat since 2010, his responsibilities cover MARPOL Annex VI, the International Regulations for the Prevention of Air Pollution from Ships, including regulations on controlling emissions to air, energy efficiency for ships, and IMO’s work to address greenhouse gas (GHG) emissions from international shipping.....MUCH MORE
In this role, he has day to day responsibility for MARPOL Annex VI including the development and finalization of the instruments on support the consistent implementation of the 0.50% sulphur limit (IMO 2020) and was responsible for the development and finalization of the Initial IMO GHG Strategy adopted by MEPC 72 in April 2018.
The industry has had three years to prepare for IMO 2020. Is the Maritime Sector ready for 1st January 2020?
If interested see also:
Shipping/Refining: Shell Traders Post $1 Billion Profit in Fuel Oil Market Ahead of January 1 Low-Sulfur Rules
Shipping/Refining: Ahead of the 2020 Low-Sulfur Rules The Diesel – Crude Spread Blows Out (FRO)
