Maersk, PBF Logistics in Low Sulfur Fuel Deal
Maersk and PBF Logistics LP announce agreement for production and storage of 0.5% sulphur fuel on the U.S. East Coast
PBF Logistics terminal facility in New Jersey to deliver approx. 10% of A.P. Moller – Maersk’s annual fuel demand as Maersk continues preparations for the International Maritime Organization’s (IMO) 2020 global sulfur regulation.
A.P. Moller - Maersk and PBF Logistics LP announced an agreement for Maersk to source and PBFX to process crude oil at CPI Operations LLC, a PBF Logistics LP terminal facility in New Jersey, United States.
The agreement enables Maersk Oil Trading to supply IMO 2020-compliant 0.5% marine fuel to its customers on the US East Coast. Annual production will be around 1.25 million metric tonnes (mt), the equivalent of approx. 10% of A.P. Moller - Maersk’s annual fuel demand.
“This processing agreement forms a cornerstone in Maersk’s fuel sourcing strategy for the IMO 2020 sulphur cap,” said Niels Henrik Lindegaard, Head of Maersk Oil Trading. “The vast majority of our fleet will comply with the regulation through use of compliant low sulfur fuels. With the capability to produce and store compliant low sulfur fuel on the U.S. East Coast we take control of the fuel supply in a key maritime hub for us. We will continue our drive to ensure compliance in all geographies come 2020.“
PBF Logistics acquired CPI Operations LLC from Crown Point International on October 1st, 2018. Assets include crude processing and storage located on the Delaware River south of Philadelphia, Pennsylvania.
In August 2018, Maersk and Vopak announced a leasing agreement for storage of 2.3 million mt 0.5% compliant fuel, equivalent of approx. 20% of Maersk’s annual fuel demand, at the Vopak Europoort Terminal in Rotterdam.