Marine Link
Tuesday, April 24, 2018

Less Fuel Oil Consumption News

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.

ITG Orders Two Ulstein PSVs

Ulstein PX121 PSV

The ROC yard, China, will construct two platform supply ships of Ulstein’s PX121 designs for the ITG Group. The contract includes an option for two additional vessels. According to Ulstein, the PX121 has become very popular among various ship-owners and investment companies, and ROC is a new yard entering the stage of constructing vessels carrying the X-BOW hull line design from Ulstein. This inverted bow leads to reduced speed loss in waves, and consequently less fuel oil consumption, and the absence of slamming is an attractive feature as the comfort for the crew is increased.

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…

Libya Cracking Down on Fuel Smuggling

© Anatoly Menzhiliy / Adobe Stock

Libya's National Oil Corporation (NOC) is considering using a chemical marking system to help trace oil products smuggled out of the country, its chairman said on Wednesday. Mustafa Sanalla also called on a European Union naval mission to combat smugglers by seizing their ships in the Mediterranean, said the United Nations should consider sanctioning smugglers, and urged Libya to reform massive subsidies that allow fuel to be sold for as little as 2-3 U.S. cents per liter. "The fuel smugglers and thieves have permeated not only the militias which control much of Libya…

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.

Shell Active in Mideast, Russia Crude Liftings

File Image (CREDIT: AdobeStock / © Jose Gill)

Oil major buys various grades from Qatar, UAE, Russia; re-sells Qatar Marine and Sokol. Royal Dutch Shell has snapped up more than 8 million barrels of Middle East and Russian crude oil loading in June and resold some cargoes at higher premiums as it profits from robust demand in Asia, five trading sources said on Friday. The region's pull on Middle East and Russian grades, priced off Middle East crude benchmark Dubai, has strengthened this month as a widening of Brent's premium to Dubai has made competing Atlantic Basin supplies more expensive.

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…

Transport Sector to Give Lift to Oil Demand

Demand for oil is intimately connected to the demand for transportation in the United States and the other advanced industrial economies. Cars, trucks, airlines, railways and shipping accounted for 71 percent of total U.S. oil consumption in 2013, according to the U.S. Bureau of Transportation Statistics. Petroleum-derived fuels, including gasoline, diesel, jet fuel and fuel oil, met 97 percent of the transportation sector's energy needs. Before the oil shocks of the 1970s as much as half of U.S. oil demand came from power producers and for heating homes, offices and factories. But following the sharp rise in prices, oil's role in other parts of the economy was largely replaced by cheaper coal, gas, nuclear and eventually renewables, leaving oil as a transport fuel.

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.

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…

Big Data Helps Shippers Cut Fuel Bills, Emissions

Photo: Maersk

By focusing on operational improvements, shipping companies are reducing fuel consumption, saving money and cutting greenhouse emissions, while continuing to increase the amount of freight transported. Maersk Line, the world's largest container carrier, cut fuel consumption by more than 13 percent between 2012 and 2014, while increasing the number of boxes carried by 11 percent, according to company records. Maersk's fuel savings amount to 1.35 million tonnes of fuel per year - and 1.5 million tonnes per year if the increase in freight volumes is taken into account.

Crowley Works to Reduce Emissions

In an age of increased environmental awareness, new commitments to reducing emissions and pollution in the air, Crowley has invested in engine modifications on its 10 tugboats dedicated to the Puerto Rico/Caribbean liner service and on its four tugs chartered to Trailer Bridge for their Puerto Rico barge service. Crowley makes four to five trips per week between the United States and Puerto Rico, which provide ample opportunity to test and perfect engine modifications, which have led to lower exhaust emissions and increased performance. Exhaust emissions take on a number of forms including visible smoke, particulate matter and nitrogen oxides (NOx). Crowley is working to reducing all three while achieving heightened performance with decreased fuel consumption.

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…

MES Tapped to Build “Neo Supramax 66BC” Ships

(Source: MES)

Mitsui Engineering & Shipbuilding was contracted to build two “Neo Supramax 66BC” ships, which are next-generation 66,000-dwt bulk carriers developed as low fuel consumption, eco-friendly ships. Keeping the usability of MES’ best selling 56,000 dwt type handymax bulk carrier (Mitsui 56) which achieved more than 170 contracts, this new and larger bulk carrier is expected to establish a new segment in bulk carrier market. Development of the ship’s design was preceded by hearings from various owners and operators and investigations on more than 600 ports worldwide.

ABB to Power Subsea Construction Vessels

ABB wins $18 million order for subsea pipeline construction vessels. Zurich, Switzerland, May 16, 2012 -- ABB, the leading power and automation technology group, recently won an order worth $18 million from Daewoo to supply energy efficient propulsion and electrical power systems for two new deep sea pipeline installation vessels that will build oil transport infrastructure off the coast of Brazil. The order was booked in the first quarter. South Korean shipyard Daewoo Shipbuilding and Marine Engineering (DSME) will build the vessels.

China Resumes Light Cycle Oil Imports

China has resumed imports of light cycle oil (LCO) after buyers cancelled shipments in April, as a planned Chinese consumption tax has not been announced, four industry sources said this week. Less than 1 million tonnes of LCO are being shipped from South Korea to China in May and June, compared with a peak of 2 million to 3 million tonnes, said two of the sources, both from South Korean refiners. The lower volumes reflects cautious buyers, they said. China had planned to impose consumption taxes on oil by-products such as mixed aromatics, light cycle oil and bitumen blend. The tax would close a loophole that allowed Chinese buyers to import light cycle oil, then sell it locally as low-grade diesel, avoiding taxes that would normally be levied on diesel.

Big Win for Maersk Fluid Technology’s BOB System

Maersk Pearl – one of the vessels to be equipped with B1000 Blending-On-Board system from Maersk Fluid  Technology Photo Maersk

In the second half of 2015, Maersk Fluid Technology introduced a new version of its cylinder oil ‘Blending-On-Board’ (BOB) system, targeting medium-sized 2-stroke propulsion engines with a cylinder bore between 420 and 680 mm. Now the first volume order has been placed for retrofit of the SEA-Mate B1000 system onto 12 tankers delivered to Maersk Tankers between 2005 and 2008 – ten vessels equipped with Wärtsilä (WinGD) RTA and RT-Flex engines with a bore between 580 and 620 mm and two vessels with engines designed by MAN Diesel & Turbo.

Despite Free GUlf Fuel, Egypt Takes Oil Shipments

Egypt is receiving fuel shipments to cover its needs for this month, an energy official said on Friday, despite $6 billion of free fuel given by its Gulf allies after the army took power last year. Amr Mostafa, vice president of the state-run Petroleum Authority for Operations, noted in a statement that fuel consumption spikes in the summer months when many Egyptians travel from Cairo to the Mediterranean coast. The government had supplied all the diesel farmers needed for this year's wheat harvest despite storage problems that had hindered production of the strategic crop last year, he said. Energy prices in Egypt are among the cheapest in the world, with subsidies eating up a fifth of state spending, and unfettered consumption has led to the worst fuel crunch for years.

IEA Releases New Publication

“There is an urgent need to consider ways to accelerate the decoupling of energy and CO2 emissions from economic growth,” said Claude Mandil, Executive Director of the International Energy Agency (IEA) at the launch in Brussels of Oil Crises and Climate Challenges: 30 Years of Energy Use in IEA Countries. This new publication examines how energy efficiency and factors such as economic structure, income, lifestyle, climate, prices and fuel mix have shaped developments in energy use and CO2 emissions in IEA countries since the organization was founded 30 years ago. It looks at developments sector-by-sector in detail and provides energy policy-makers with data and insights that will help them find ways to use energy efficiency and lower-carbon fuels to achieve a more sustainable future.

LNG Fuel is Not a Cure-all Solution

Liquefied natural gas (LNG) is not a panacea to reducing greenhouse gas emissions, and its increasing use as a marine fuel could be worse for the environment than burning heavy fuel oil, said Ian Adams, the former CEO of the International Bunker Industry Association. “Whilst it is well documented that LNG is an excellent solution for reducing SOx and NOx emissions, I am dismayed to see it being promoted as a solution for reducing GHGs,” Adams said, in stark contrast to claims that the use of LNG as a marine fuel can reduce the industry’s CO2 emissions by as much as 75 percent. Adams, a Fellow of the Institute of Marine Engineering, Science & Technology who now heads the Association of Bulk Terminal Operators…

Korean Shipyard Delivers CMM Tankship

King Gregory Delivery: Photo credit CMM

Consolidated Marine Management (CMM) take delivery of 'King Gregory', first of two fuel-efficient medium-size tankers from Hyundai Mipo. The 52,000 dwt King Gregory, is the first of two medium-range (MR), IMO II & III-class oil/chemical tankers contracted by Latsis Group's Consolidated Marine Management. The ship features the latest equipment and technology to cope with new environmental requirements and energy-saving demands, according to Kostas Vlachos, Consolidated’s Chief Operating Officer.

Asia: LPG Shipping and LNG Pricing

Image: Navigator Gas

While declining Asian LNG prices have reduced margins on the long-distance LNG trade, causing spot-charter rates for LNG vessels to fall, LPG shipping earnings are forecast to remain buoyant on the back of low oil prices and the absence of fuel substitution. According to LPG Forecaster, published by global shipping consultancy Drewry, low oil prices have not triggered the substitution of LPG as the fuel of industrial use, as feared by some analysts. As a result, LPG shipping demand has remained intact and low bunker prices have supported vessel earnings.

Euronav Reports Earnings; Pushes Fuel Economy

Belgium's Euronav reported a net loss of US$ 31-million in its Q4 2012 financial report. The result of the fourth quarter is affected positively by the revaluation at marked-to-market levels of non cash items (unrealized) such as hedge instruments on interest rates for a total of US$ 600,000. After successfully implementing a strict slow and super slow steaming policy whenever possible, Euronav continues to apply measures to reduce fuel consumption across its spot fleet. The company has already retrofitted a VLCC, with a Mewis Duct, improving propeller efficiency, which demonstrated to be the most efficient energy saving device. The same retrofitting will be done on at least 4 Suezmax vessels this year.

Maritime Reporter Magazine Cover Apr 2018 - Offshore Energy Annual

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