Marine Link
Wednesday, April 25, 2018

Fuel Oil News

China's Proposal on ISO Sulphur Test

Image: International Bunker Industry Association

A proposal by China to mandate specific ISO test methods for sulphur, building on a proposal made by IBIA to the IMO earlier this year, has won support to be further considered as the IMO works on measures to ensure uniform implementation of the 0.50% sulphur limit. China submitted its proposal to the 72nd session of the IMO’s Marine Environment Protection Committee (MEPC 72) last week, proposing that the test method of sulphur content of fuel oil should be made mandatory to avoid disputes, and that the methods should be ISO 8754:2003 or ISO 14596:2007.

Clean Arctic Hails IMO Action on HFO

Photo: HFO-Free Arctic

The Clean Arctic Alliance has applauded progress by International Maritime Organization member states towards banning use of the world’s dirtiest fuel – heavy fuel oil – from Arctic shipping. It also called for Member States to make every effort to adopt and rapidly implement a ban by 2021, as proposed by eight IMO Member States and supported by other countries during the meeting. Plans to develop a ban on heavy fuel oil (HFO) from Arctic shipping, along with an assessment of the impact of such a ban…

LNG as a Fuel Won't Meet Strict Carbon Regulations - analyst

File Image: A recent LNG bunkering operation in progress (CREDIT: Nauticor)

Switching to liquefied natural gas (LNG) to fuel ocean-going vessels may not be enough for shippers to comply with long-term emissions regulations and they will have to find additional ways of reducing emissions, JBC Energy said on Tuesday. The International Maritime Organization (IMO) on Friday reached an agreement to cut carbon dioxide (CO2) emissions by at least 50 percent by 2050 compared with 2008 levels. Shipping accounts for 2.2 percent of world CO2 emissions, according to the IMO, the United Nations agency responsible for regulating the shipping industry.

Scrubbers 'No Silver Bullet' for Shipping -Wartsila

© Diego Cardini / Adobe Stock

Global shipping fleet must cut sulfur emissions by 2020. Wartsila received record orders for sulfur scrubbers last year. Shipping industry hopes that so-called sulfur scrubbers are a quick-fix solution to compliance with drastic emissions reduction demanded by 2020 are somewhat misguided, one of the world's biggest manufacturers of the equipment told Reuters. The International Maritime Organization's (IMO) cut to the amount of sulfur the world's fleet can emit will have massive implications for shippers, oil refiners and even crude oil producers.

IMO to Use IBIA’s Best Practice for Suppliers

Image: International Bunker Industry Association

The first edition of IBIA’s “Best practice guidance for suppliers for assuring the quality of bunkers delivered to ships” was welcomed by the 72nd session of the IMO’s Marine Environment Protection Committee (MEPC 72) last week, where it was agreed that it would be a good basis for the development of IMO guidance. For the past few years, an IMO Correspondence Group on Fuel oil quality (CG) has been working on developing draft guidance on best practice for assuring the quality of fuel oil delivered for use on board ships.

Langh Tech Warns of Sulphur Fuel Carriage Ban Impact

Laura Langh-Lagerlof  (Photo: Langh Tech)

Finland-based exhaust gas cleaning firmLangh Tech has explained how last week’s decision to prohibit the carriage of noncompliant fuel oil will have a material and technical impact on commercial ship operations.In a special panel session during the Sulphur Cap 2020 conference in Amsterdam, Langh Tech Managing Director Laura Langh-Lagerlof told delegates, “If such measures are adopted, any shipowner, operator, master mariner or chief engineer found guilty of transporting noncompliant…

Tanker Spills Oil in Louisiana

© Rene van Quekelberghe / MarineTraffic.com

A Dutch flagged product tanker has reportedly discharged 2,600 gallons of heavy fuel oil into the Mississippi River near Norco, La., Monday. The cause of the spill is under investigation.The U.S. Coast Guard said it is responding to the incident after its watchstanders in New Orleans received a report of the oil discharge from the vessel Iver Exporter at approximately 1 a.m.The source of the discharge near mile marker 126 on the Lower Mississippi River is reported to be secured…

Oil Recovered from Sunken Ship Thorco Cloud

Thorco Cloud - preparing a Moskito for deployment Photo Miko Marine

More than 440 tons of heavy fuel oil was extracted from the tanks of the sunken general cargo vessel Thorco Cloud. The wreck lies in two sections 1,730 meters apart and 70 meters down in the middle of the eastbound traffic lane of the Singapore Strait following a collision in December 2015. The heavy oil in the fuel tanks and in trapped compartments was seen as a major pollution hazard. Both the bow and stern sections contained fuel tanks that required emptying, so the Thorco Cloud’s owner…

LPG, Fuel Tankers Collide off Singapore

© Kero / MarineTraffic.com

Two oil products tankers had collided off Singapore coast but the impact of the accident was not immediately clear, industry sources familiar with the matter said on Tuesday. The tankers were identified as Crystal Sunrise, chartered by Japanese liquefied petroleum gas (LPG) firm Gyxis, and Astro Saturn chartered by European trading house Trafigura. "We can confirm that the Astro Saturn is on TC (time charter) to Trafigura and is carrying fuel oil," said it's spokeswoman without elaborating further.

2020 Low-sulfur Rule to Trigger Huge Disruptions -IEA

© natagolubnycha / Adobe Stock

The shipping industry and oil refineries are not doing enough to prepare for new rules cutting the amount of sulfur that vessels can emit from 2020, according to the head of the International Energy Agency's (IEA) oil industry and market division.The new rules drastically cut the amount of sulfur that the world's ships can emit, from 3.5 percent currently to just 0.5 percent. Ships that install "scrubbers" that remove sulfur as the fuel is burned can continue to use higher sulfur fuels…

Shipping Fuel Costs to Spike 25% on Sulphur Cap

© Kara / Adobe Stock

Costs to rise from roughly $100 bln today; just 2 pct of global fleet to have scrubbers in 2020. Global shipping fuel costs are likely to rise by a quarter, or $24 billion, in 2020 when new rules limiting sulphur kick in, consultants Wood Mackenzie said on Wednesday. The ballooning costs will come as the change in regulations forces a portion of the world's fleet to switch to lower sulphur, but higher cost, fuels such as marine gasoil (MGO) and ultra low sulphur fuel oil. The…

Global Shipping to Adopt GHG Strategy

Photo: International Maritime Organization (IMO)

The adoption of an initial strategy on the reduction of GHG emissions from ships is one of the key items on the agenda of the International Maritime Organization’s Marine Environment Protection Committee (MEPC 72), which is now under way at International Maritime Organization (IMO) Headquarters in London (9-13 April). The initial strategy will be a framework for all Member States, which is expected to set out the future vision for international shipping, the levels of ambition to reduce GHG emissions and guiding principles.

Cleaner Maritime Air for North America Comes Soon

Image credit EPA

On the operative day the sulfur content of the fuel oil used on board ships operating within the ECA may not exceed 1.00 percent m/m (10,000 ppm). The boundaries of the North American ECA are defined in IMO MEPC.1/Circ.723 . The US EPA has issued Interim Guidance on the Non-Availability of Compliant Fuel Oil for the North American ECA and more information is also available on the US EPA website.

Four Bunker Barges Seized in Singapore over Unpaid Debt

Singapore law firm asks for vessels to be arrested; bunker barges owned by Vermont UM Shipping. Four marine refuelling barges owned and operated by Vermont UM Shipping Pte Ltd were seized in Singapore on Monday night, according to the website of Singapore's Supreme Court. Singaporean law firm Rajah & Tann seized the vessels over unpaid claims on behalf of its client, Malayan Banking Berhad, or Maybank, said a source with direct knowledge of the matter who declined to be identified as the person is not authorised to speak to the media. The source declined to specify the amount of the claims against Vermont UM Shipping. Rajah & Tann did not respond to an emailed request for comment. Maybank also did not respond to an emailed request for comment.

USCG Marine Safety Alert

The U.S. Coast Guard issued a marine safety alert today to remind vessel owners and operators to establish effective fuel oil changeover procedures during efforts to comply with MARPOL Annex VI emission regulations. The USCG said that several recent incidents of fuel leakages during changeovers prompted the alert. The USCG cited multiple unspecified incidents involving substantial machinery space fuel leakages that occurred while vessels were switching fuel oil to ultra low sulfur (ULS) fuel oil to ensure compliance with MARPOL Annex VI, Regulation 14.3.4. The new regulations, which came into effect on January 1, lowered maximum fuel sulfur content from 1.0% to .10%.

Mercuria, PetroChina Selling Offshore Stored Fuel Oil

File Image: CREDIT BMT

Three to four tankers storing fuel oil, down from eight or nine. Independent trading house Mercuria and Chinese state oil giant PetroChina are selling fuel oil stored in vessels off Singapore and southern Malaysia on strong demand from the shipping and power sector, several trade sources said on Friday. The number of vessels storing fuel oil has halved from a month ago as Mercuria and PetroChina may have resold cargoes purchased over March to May, the sources said. Geneva-based…

Petroperu Seeks to Sell Fuel Oil Cargo

State-run Petroperu is offering to sell a 220,000 barrel cargo of fuel oil for delivery at Talara port on September 6 to 10, according to a tender document seen by Reuters on Tuesday. The oil company in July sold a similar cargo of fuel oil that will be loaded this week. It has also been actively buying crude and fuel cargoes on the open market in recent months. For this tender, the company is offering to deliver fuel oil with maximum 1.4 percent sulfur or heavy fuel oil with up to 1.5 percent sulfur. The product must be exported from Peru.

Heavy Fuel Oil Test Plan

The Environmental Protection Agency (EPA) posted on the Internet its Heavy Fuel Oil Test Plan and Robust Summary. As noted in this lengthy document, heavy fuel oil is a principal fuel in marine applications. It is a diverse group of substances encompassing hydrocarbons with a wide range of molecular weights. Existing aquatic toxicity data show heavy fuel oil related refinery streams to have moderate to no aquatic toxicity depending upon species and test substance. (HK Law).

Jan-March Oil Shipments from Georgia's Batumi Down 54 pct

Batumi Port (© Sergej Ljashenko/ Adobe Stock)

Oil and oil-related shipments from Georgia's Black Sea port of Batumi fell 53.7 percent between January and March from a year earlier, an official at the KazMunaiGas-operated terminal said on Wednesday. The official said some volumes of crude oil had been rerouted to the Baku-Tbilisi-Ceyhan pipeline and to the Caspian Pipeline Consortium this year, while some fuel oil had been sent to the port of Taman in Russia and Georgia's other Black Sea port of Kulevi. About ten Batumi terminal…

DNV GL White Paper Assesses Alternative Fuels

Classification society DNV GL has issued a new white paper which assesses a range of alternative fuels and technologies. The white paper “Alternative fuels and technologies for greener shipping” examines the price, availability, regulatory challenges and environmental benefits of alternative fuels and technologies, including LNG, LPG, hydrogen, fuel cells, and hybrid and battery technologies, and comparing them to the use of conventional fuel with scrubbers and new low sulphur alternatives.

USCG Alert: Compliance with MARPOL Requirements

The Coast Guard has confirmed several reports it has received stating that main engines may not attain the expected speed when using ultra low sulfur fuel oil. The Coast Guard has revised its list of recommendations to vessel owners and operators about the importance of establishing effective fuel oil changeover procedures to comply with MARPOL Annex VI emission regulations. Ensure fuel oil switching is accomplished outside of busy traffic lanes and the ECA. Generally the ECA is 200 nm from the North American Coast and 50 miles from the U.S. Caribbean coast (e.g., the Commonwealth of Puerto Rico and the U.S. Anticipate that there may be many technical challenges for operators when beginning to use ULS fuel oil as a matter of routine and compliance.

Singapore's Record Fuel Stocks Move to Floating Storage

Record high stocks of fuel oil in Singapore are pushing traders to store the shipping and feedstock fuel into tankers temporarily as demand slows regionally. At least seven very large crude carriers (VLCCs) have been provisionally fixed to store fuel oil on short-term time charters, traders and shipbrokers said. Lower oil prices have boosted refinery profits over most of this year, in turn driving refiners to maximise run rates and increase the supply of fuel oil in the region, traders said. Traders are also taking advantage of cheaper freight rates and a steep contango where prices of cargoes loading in the current month are cheaper than those loading in forward months.

Iranian Fuel Oil Exports Trade Skirts Sanctions

Iran is sidestepping Western sanctions and managing to sell hundreds of thousands of tonnes of fuel oil every month through companies based in the U.S.-allied United Arab Emirates, trading sources told Reuters. The U.S. and EU sanctions that came into force in 2012 prohibit the import, purchase and transport of Iranian petroleum products to pressure Tehran to halt its disputed nuclear programme. Washington has also pressed its allies around the world to clamp down on the shipping of Iranian oil products. But Tehran has been using innovative methods to circumvent the restrictions, several Middle East-based trading sources said. They include tankers switching off their tracking systems…

Maritime Reporter Magazine Cover Apr 2018 - Offshore Energy Annual

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