Gas Oil News

08 Nov 2019

IMO2020: Market Uncertainty Brings More Fuel Oil Price Volatility

Photo: BIMCO

The oil market has recently been shaken up by geopolitical events, but volatility in the price difference between low and high sulphur fuel cannot be explained by that alone – the uncertainty is the chaos factor.The uncertainty of the upcoming IMO 2020 Sulphur cap regulation (IMO2020) is having a big impact on the bunker market. Whereas, the price for Marine Gas Oil Low Sulphur (MGO LS) has largely remained stable, the price for High Sulphur Fuel oil (HSFO) has been become increasingly more volatile in recent months.

07 Nov 2019

Titan Completes 1st LNG Bunkering in IJmuiden

Image: Titan LNG

Dutch liquefied natural gas (LNG) supplier Titan LNG, in cooperation with the Port of IJmuiden and OD IJmond, completed the first bunkering of LNG to the Werkendam, Van Oord's LNG-powered crane vessel.“This first for the Port of IJmuiden is another important step for LNG bunkering, the port is strategically located for bunkering activities and the operation today further acknowledges our strong track record in LNG bunkering”, according to Jippe van Eijnatten, director business…

07 Nov 2019

Fuel Spread for 32 Ports on BIMCO Website

Photo: BIMCO

BIMCO members can now monitor the price spread between Marine Gas Oil Low Sulphur and 380 centistoke High Sulphur Fuel Oil in 32 different ports around the world with daily information supplied by MABUX.The service is intended to assist members in making bunkering decisions before and after January 1, 2020.“We have seen significant fluctuations in the market over the past couple of months – fluctuations that can only be explained by the massive uncertainty about the future. It is currently not operating by market fundamentals.

04 Nov 2019

CSA 2020 Applauds DFDS on EGCS Drive

Pic: Clean Shipping Alliance (CSA) 2020

The international organization to promote Exhaust Gas Cleaning Systems (EGCS), Clean Shipping Alliance (CSA) 2020 has congratulated Danish ferry operator DFDS A/S for ten years of successful scrubber operation, with EGCS onboard the 37,939gt roro Ficaria Seaways achieving more than 50, 000 running hours since 2009.Ficaria Seaways, one of the first ro-ro vessels to be fitted with an Alfa Laval PureSOx system, operates inside the stringent European Sulfur Emission Control Area (SECA)…

30 Oct 2019

Viva Energy Fuels the Future of Shipping

Photo: Viva Energy

Viva Energy Australia announced the launch of its new very low sulphur fuel oil (VLSFO), developed to meet the International Maritime Organization’s (IMO) new regulations on fuel sulphur content.The new regulations will limit the sulphur content in marine fuels to 0.5% from the current level of 3.5%, in a move to reduce sulphur oxide emissions globally. Vessels worldwide will be required to comply by January 1, 2020.The introduction of the IMO’s new sulphur cap on fuels is one…

29 Oct 2019

Euronav Readies Fleet for IMO 2020 Start

A Euronav tanker in Drydock. Credit: Euronav

Belgian tanker operator Euronav expects to complete preparations on its fleet in coming weeks ahead of tougher rules next year limiting sulphur emissions from ocean-going vessels, a company executive said on Tuesday.Ship owners must cut emissions by reducing the sulphur content in fuel to 0.5% from 3.5% under the rules, which are set by the United Nations' International Maritime Organization (IMO), and come into effect in January.To comply, ship owners can use low-sulphur fuel…

29 Oct 2019

ExxonMobil Talks With Teekay Ahead of IMO 2020

The International Maritime Organization (IMO) has mandated a global 0.50% cap on the maximum level of sulphur in marine fuel. This new cap represents a significant reduction – down from the current 3.50% limit – and presents the marine industry with compliance challenges.Starting from January 1, 2020, vessel operators will need to use a compliant fuel, or have a scrubber fitted if they wish to continue burning high-sulphur fuel oil. This ruling does not affect Emission Control Areas (ECAs), where a 0.10% sulphur fuel is still required.ExxonMobil anticipates that the vast majority of the industry will choose a low-sulphur fuel to meet the new IMO 2020 cap. However, there is no single route to compliance.

25 Oct 2019

Viking Supply Ships Scoops PSV Pair

(Image: Wärtsilä)

Swedish-based Viking Supply Ships (VSS) in partnership with funds managed by Borealis Maritime, has entered into a contract to purchase two platform supply vessels (PSV) currently under construction. In addition to the partial ownership, VSS has been awarded full operational and commercial management of the vessels, the company said.VSS did not reveal specific transaction details, but said the pair has been acquired at a significant discount compared to original contract price…

25 Oct 2019

Floating Storage for IMO 2020 Fuel builds in Asia

AdobeStock / © dbvirago

Stockpiles of low-sulphur marine fuels held in floating storage around the Singapore trading and pricing hub are steadily growing ahead of a 2020 global deadline for rules that have shaken the global oil refining and shipping industries.A total of 32 ships, mostly supertankers capable of carrying 300,000 tonnes or more of oil, are currently anchored in Malaysian waters near Singapore accumulating stores of IMO-compliant fuels on board, according to data released by intelligence…

23 Oct 2019

GE Powers World’s Largest Crane Vessel

Photo: GE

In September, Heerema Marine Contractors’ semi-submersible crane vessel (SSCV) Sleipnir completed its first project, installing the topsides for the Leviathan development in the Mediterranean, a world record lift.At 220 meters long and 102 meters wide, Sleipnir is the world’s largest crane vessel, with two 10,000-tonne revolving cranes. GE said it provided the electrical part of the power and propulsion system including 12 sets of 8-megawatt (MW) generators, eight units of 5.5 MW propulsion motors…

23 Oct 2019

Oil Stockpiling Builds Ahead of IMO 2020 Rules

EXXON's Rotterdam Refinery (CREDIT: EXXON)

S-Oil, South Korea's third-largest refiner, said on Wednesday that regional refining margins are expected to improve in the fourth quarter on the back of inventory build-up ahead of implementation of stricter rules on marine fuels in 2020.The refiner, whose top shareholder is Saudi Aramco, said in an earnings statement, strong demand for heating oil was also expected to support refining margins, along with the International Maritime Organization (IMO)'s stricter shipping fuel…

16 Oct 2019

U.S. Shipping Sanctions Give Boost to EU Refiners

Exxon's Rotterdam Refinery (CREDIT EXXON)

U.S. sanctions imposed last month on subsidiaries of vast Chinese shipping fleet Cosco have given an unexpected boost to European refiners as less crude oil from the North Sea and West Africa heads east, traders and analysts said.Freight rates have soared as oil producers scramble for non-blacklisted vessels, discouraging longer-distance voyages.Complex refining margins for advanced facilities capable of extracting even more valuable products like diesel and gasoline, have been especially strong in Europe, industry sources said.The U.S.

10 Oct 2019

BIMCO Offers Bunker Fuel Price Monitoring

Graph: BIMCO

BIMCO has developed a monitoring service for bunker prices, with data provided by MABUX, which is now available to all BIMCO members. The new interactive graphs allow price fluctuations in the major bunkering hubs of Singapore and Rotterdam to be tracked. They will show the bunker prices for 380cST HSFO (high sulphur fuel oil) and MGO LS (marine gas oil low sulfur), both in USD per metric ton, as well as the spread between the two fuel types, with data available since June 2017.

03 Oct 2019

Hapag-Lloyd Cruise to Sail Without HFO

Image: Hapag-Lloyd

Hapag-Lloyd Cruises has announced that from July 2020 its global fleet will no longer burn heavy fuel oil (HFO) and instead run exclusively on marine gas oil with a maximum sulfur content of 0.1 % (LS-MGO)."In doing so, the company will cut the emissions of its fleet of both luxury and expedition ships significantly. By transitioning to the low-pollutant fuel voluntarily, the sulfur emissions of the Hapag-Lloyd Cruises’ fleet will be cut by 80 %. Additionally, the switch to marine gas oil means a reduction in soot and particulates of up to 30 %…

09 Sep 2019

New Ship Emission Regs: Dirty Fuel Down but Not Out

File Image / AdobeStock / © dbvirago

Asia's spot premium for 380-centistoke (cst) high-sulphur fuel oil (HSFO) is expected to ease gradually from its recent record highs as shippers adopt cleaner marine fuels next year to meet new, tougher rules on emissions from ships.But as the deadline approaches, analysts and traders agree that demand for the dirtier HSFO will not die out completely as an increasing number of ships get equipped with sulphur-cleaning devices in the coming years to combat pollution.Starting Jan.

09 Sep 2019

Cosmo Oil Builds IMO-compliant Fuel Stocks at Chiba Port

Japanese oil refiner Cosmo Oil is to build new storage capacity for IMO-compliant low-sulfur fuel at its Chiba facility. (Photo © Adobe Stock / show999)

Japan’s third-largest oil refining company, Cosmo Oil, , has started building stocks of very-low-sulfur fuel oil (VLSFO) for supply to domestic marine fuel markets from next month (October 2019) ahead of the IMO 2020 mandate requiring ships globally to reduce their bunker fuel sulfur content to 0.5% from the current 3.5% from January 2020.Cosmo Oil is using VLSFO produced at its residue desulfurizer (RDS) unit at its Chiba refinery near Tokyo to build the stocks, Cosmo Oil’sPresident Shunichi Tanaka said on Sunday…

05 Sep 2019

Maersk, Koole in Dutch Deal for 2020 Fuel

Pic: Maersk

Maersk’s subsidiary Maersk Oil Trading has teamed up with Dutch liquid bulk storage operator Koole Terminals for the production of IMO 2020-compliant bunker fuel in the Port of Rotterdam.According to a Maersk statement, the production will take place at the Petrochemical Industrial Distillation (PID) unit, located at Koole’s Botlek site in the heart of the Port of Rotterdam. The toll distillation deal allows Maersk to produce VLSFO bunker fuel and will enable Maersk to further…

05 Sep 2019

Euronav to Store Low-Sulfur Oil

Pic: Euronav

The crude oil tanker company Euronav has purchased a total of 420,000 metric tons of compliant fuel oil and marine gasoil so far, the company revealed as it detailed its IMO 2020 sulfur cap plans. In aggregate the purchase value of very low sulfur fuel oil (VLSFO) has been at $447 per metric ton compared to a bunker price (HFO-3.5% Sulfur content) of $400 per metric ton over the same procurement period.According to the Belgium shipping company, the oil is currently aboard a ultra large crude carrier (ULCC) Oceania, a vessel built in 2003, and will soon be on its way to Singapore.

31 Aug 2019

NYK Signs LNG Vessel Order for Total TC

Pic: NYK

Japanese shipping gaint Nippon Yusen Kabushiki Kaisha (NYK) has signed a new long-term contract with Total Gas & Power Chartering Limited (TGPCL), a subsidiary of Total, a leading oil and energy company headquartered in France.The contract calls for TGPCL to charter from NYK a newly built liquefied natural gas (LNG) carrier that will be built by Samsung Heavy Industries Co. Ltd. in Korea and scheduled for delivery in 2021.The LNG carrier will be equipped with a WinGD-made dual-fuel slow-speed diesel engine (i.e.…

30 Aug 2019

McQuilling Mid-Year Tanker Market Outlook

File Image: AdobeStock / © Carabay

McQuilling Services Announces the Release of the 2019 Mid-Year Tanker Market Outlook Update.The Mid-Year Tanker Market Outlook Update provides an outlook on the global tanker market in the context of global economic growth and oil fundamentals influencing tanker demand and vessel supply. The outlook includes a view on future asset values, time charter rates, market freight rates and TCE revenues for 24 major tanker trades and four triangulated routes across eight vessel segments for the second half of 2019 through the remaining four years of the forecast period 2019-2023.

30 Aug 2019

UPM to Charter 7 LNG-fueled Newbuilds

Image: UPM Global

Helsinki-headquartered UPM Logistics says that it has entered into a long-term charter agreement with the Finnish Bore Ltd and the Dutch Wijnne Barends, both affiliates of the Dutch Spliethoff Group.Together, the companies will design and build seven state-of-the-art vessels for sustainable sea transportation for UPM in Europe.“This arrangement is a consistent step in UPM’s logistics strategy. It will safeguard a sustainable, competitive and reliable shipping solution for our businesses and customers on long term…

29 Aug 2019

GCC Bunkers in Marine Fuel Processing Pact

Pic: GCC Bunkers

Houston-based low sulfur specialists, GCC Bunkers (GCC) has reached a processing agreement with Texas International Terminals to produce IMO 2020 compliant 0.5% sulfur bunker fuel oil.The physical supplier of marine fuels said that the parties would also produce 0.1% ECA specification gasoil in the Houston, Texas area, starting in early 2020.“Our mission from the day we started GCC has been to provide solutions to our customers. Now, more than ever, the marine fuel supply business needs to provide absolute assurance of quality and reliability to its customers…

28 Aug 2019

IMO2020: Asian Hydrogen Demand to Rise

"There are going to be some projects, many of which in southeast Asia, whereby refiners will be looking to take bottom of the barrel, residue products, and put them through a gasification process to produce hydrogen which can then be used to desulfurize the sulfur particulates. That's how they are going to address IMO 2020," Angel said.
Image: © Rob/Adobe Stock

Asia's hydrogen gas demand will rise as the region's oil refineries use the gas to produce low-sulfur fuel to meet new environmental regulations, the head of the world's largest industrial gas producer said."The demand for hydrogen has grown steadily over the years at a much faster rate than GDP growth," Linde Plc's Chief Executive Officer Steve Angel told Reuters ahead of the groundbreaking ceremony for Linde's $1.4-billion gas project on Singapore's Jurong Island."The twin drivers…

Maritime Reporter Magazine Cover Nov 2019 - Workboat Edition

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