Low Sulphur Fuel Oil News

24 Feb 2020

Maersk to Raise HSFO Bunker Fuel Consumption to 25%

Ā© Darryl Brooks / Adobe Stock

Danish shipping group A.P. Moller-Maersk plans to raise the proportion of high sulphur fuel oil it consumes from 10% to 25% by the year-end, CEO Soren Skou says.The world's largest container shipping firm consumed a total of around 11.80 million tonnes of shipping fuel last year.Maersk's current shipping fuel use comprises of around 10% ultra low sulphur (0.1%) fuel oil, 10% high sulphur fuel oil and the remaining 80% is low sulphur fuel oil. (Reporting Stine Jacobsen and Shadia Nasralla. Writing by Ahmad Ghaddar; editing by David Evans)

23 Jan 2020

Low-sulphur Fuel Oil Prices Drop

Ā© Igor Yu. Groshev / Adobe Stock

Prices for very low sulphur fuel oil (VLSFO) in ports around the world have fallen within the first month since the International Maritime Organization's (IMO) new regulation for a 0.50% global sulphur cap for marine fuels has taken effect.Singapore has seen one of the largest drops in the price of VLSFO, which peaked on January 7, 2020 at $740 per metric ton (MT) and dropped $99 to $641 per MT on January 22, BIMCO points out.Prices rose in December as shipowners transitionedā€¦

17 Jan 2020

Low-sulphur Fuel Sales Surge

Ā© vladsv / Adobe Stock

The final quarter of 2019 marked a massive decline of high-sulphur fuel oil (HSFO) sales, as the industry transitioned into compliance of the International Maritime Organization's (IMO) 2020 Sulphur Cap (IMO 2020). In Singapore, the worldā€™s largest bunkering hub, the bunker sale landscape saw significant change as the sale of high-sulphur fuel oil dropped tremendously in a matter of months. In contrast, the sale of low-sulphur fuels skyrocketed in the final quarter.The first waveā€¦

14 Jan 2020

China Tax Waiver for Cleaner Ship Fuel Exports

Copyright: Suriyapong/AdobeStock

China has approved a long-awaited tax waiver on exports of cleaner ship fuel, paving the way for refiners to boost output, though Beijing may initially limit shipments to focus on growing its coastal marine fuel market, state refiner officials say.Ships globally have switched to lower sulphur fuels, or use emissions-removing devices, to comply with new rules imposed by the International Maritime Organization this year.China's State Council, or cabinet, gave the go-ahead to waive taxes on the 0.5% or very low sulphur fuel oil (VLSFO)ā€¦

20 Dec 2019

China Stocks up on VLSFO Ahead of IMO2020 Deadline

AdobeStock / Ā© Mikesjc

Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil from companies like oil major Shell, Germany's Uniper and U.S. commodities trader Freepoint ahead of a new standard on emissions for the global shipping industry that kicks in on Jan. 1.While China's state refiners have pledged to produce a combined 14 million tonnes of the fuel for 2020 that complies with the tighter rules set by the International Maritime Organization (IMO), Beijingā€¦

05 Dec 2019

Tankers Running on Fumes as Shipping Fuel Switch Causes Delays

Ā© Suriyapong / Adobe Stock

Disruption to shipping from the long-anticipated switch to more environmentally friendly marine fuels has finally arrived, exacerbated by logistical problems as much as any shortage of the cleaner fuel.New International Maritime Organization (IMO) rules, referred to as IMO 2020, aim to stop ships from using fuels containing more than 0.5% sulphur unless they are equipped with exhaust-cleaning systems known as scrubbers.From the start of January ships must load very low sulphurā€¦

04 Dec 2019

CMA CGM and Total to Develop LNG Ship Refueling in Marseille

Ā© saiko3p / Adobe Stock

Container shipping firm CMA CGM will use the French Mediterranean port of Marseille for refueling some of its planned gas-powered vessels, backed by a supply partnership with energy group Total.Total will supply liquefied natural gas (LNG) and a refueling barge to enable CMA CGM to refuel LNG-powered vessels at the Marseille-Fos hub starting in 2021, the companies said in a joint statement on Wednesday.The initiative covers five vessels with a capacity of 15,000 twenty-foot equivalentā€¦

02 Dec 2019

Asian Refiners Strive to Finish IMO Preparations

Ā© vladsv / Adobe Stock

At SK Energy's largest refinery in South Korea, engineers are rushing to complete a new processing unit ahead of schedule as the firm looks to boost sales of low-emission fuels before new marine fuel standards take effect in just one month.In Japan, the country's second-biggest refiner Idemitsu Kosan Co is taking a more cautious stance, increasing capacity for low sulphur fuel oil (LSFO), but also relying on blending to produce IMO 2020 compliant bunker fuel.The different approachesā€¦

02 Dec 2019

Fuel Market Calm ahead of IMO Changeover

AdobeStock / Ā© 14KT Gold

Fears about a shortage of diesel and other middle distillates stemming from new marine pollution regulations have receded, with distillate premiums falling to some of the lowest levels for two years.From the start of 2020, ocean-going ships will be required to use low-sulphur fuels or employ exhaust gas cleaning systems, known has scrubbers, under pollution control rules approved by the International Maritime Organization (IMO).Fuel traders and shipowners have warned for severalā€¦

25 Nov 2019

IMO 2020, China Output Pummels Asian Refinery Margins

AdobeStock / Ā© 14KT Gold

Profits at Asian refineries are being buffeted by a combination of factors, chief among them uncertainty over how exactly new shipping fuel standards will play out and the rise of China as a product exporter.Refinery margins in Asia have been knocked to the lowest since the financial crisis in 2008 by some measures, as the industry grapples with the disparate factors.The return from processing a barrel of Dubai crude at a typical Singapore refinery was a loss of $1.19 a barrel in early Asian trade on Monday.

13 Nov 2019

Sinopec Builds 100 Barge VLSFO Fleet

Pic: Sinopec

Chinese energy giant China Petroleum & Chemical Corporation (Sinopec) is planning to build a fleet of 100 barges over the next three years as part of its mission to become a major regional supplier of the IMO 2020-compliant very low sulphur fuel oil (VLSFO).According to a report from Reuters, this would be one of the top Asian refinerā€™s biggest shipping investments, Sinopec hopes the fleet would serve its stated ambition to become a top regional supplier of VLSFO.The fleet would include new orders of 50 vessels of 8ā€¦

06 Nov 2019

Neste Offers LSFO in Germany

Pic: Neste Corporation

Finlandā€™s oil refiner Neste Corporation has made low-sulphur fuel oil (LSFO)available in Bremerhaven, Germany in response to the upcoming IMO 2020 global regulation.Neste and the German BMT Bunker und Mineralöltransport GmbH have signed a partner agreement concerning distribution and sales of Neste MarineTM 0.5. This new marine fuel, containing maximum 0.5% sulphur, has been available in Bremerhaven, Germany, since the beginning of November 2019. BMT is a bunkering services company with a long experience in the sales of marine fuels.

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 Organizationā€™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 IMOā€™s new sulphur cap on fuels is oneā€¦

25 Oct 2019

Floating Storage for IMO 2020 Fuel builds in Asia

AdobeStock / Ā© 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 intelligenceā€¦

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.

11 Oct 2019

U.S. Sanctions Deal Blow to LSFO for 'IMO 2020'

file image (credit: AdobeStock / Ā© dbvirago

Highly sought after types of oil best suited to making cleaner shipping fuel are suddenly finding they are a tougher sell for thirsty East Asian markets, traders say, in an unintended consequence of U.S. sanctions on a Chinese shipping fleet.With just over two months until environmental rules are set to mandate the biggest changes to ship power in over a century, certain rare types of West African oil have soared in value but have had to be marked down due to the higher costs of transport.The United States imposed sanctions on units of China's COSCO on Sept.

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.

08 Oct 2019

Shipping Confidence Dips as Trade War Worries Weigh

Richard Greiner (Photo: BDO)

Confidence in the shipping industry fell in the past three months to its lowest level for two and half years, according to the latest Shipping Confidence Survey from leading shipping adviser and accountant BDO. Yet owners, charterers and managers were more confident than they were at the time of the previous survey in May 2019.The average confidence level recorded by the survey in the three months to end-August 2019 was 5.8 out of a possible maximum of 10.0. This compares to theā€¦

25 Sep 2019

GP Global Delivers its First LSFO Bunker Fuel in Fujairah

Ā© seafarer81 / Adobe Stock

Oil trader and bunker provider GP Global delivered its first barge of low-sulphur fuel oil compliant with IMO regulations on sulphur emissions into Fujairah in the United Arab Emirates, it said on WednesdayThe company delivered a 6,000-tonne bunker barge at the port, a main hub in the Mideast Gulf region for bunker operationsFrom the start of 2020 all ships will be required to burn fuel with maximum 0.5% sulphur, down from 3.5% sulphur currently, unless they have sulphur cleaning kits called scrubbers, according to International Maritime Organization regulations (Reporting by Ahmad Ghaddar; Ed

09 Sep 2019

New Ship Emission Regs: Dirty Fuel Down but Not Out

File Image / AdobeStock / Ā© 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.

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: Ā© 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 driversā€¦

02 Aug 2019

AALā€™s Adoption Of IMO 2020 Mandates

Photo courtesy of AAL

With widespread discussion and reporting about the IMO 2020 ā€˜Sulphur Capā€™ regulation, coming into effect January 1st 2020, we would like to clarify our position and how we plan to move forward over the coming weeks and months to fully prepare ourselves and our customers for this important and long-awaited milestone in our sectorā€™s history. Kyriacos Panayides, Managing Director, AAL, weighs in on the issues:The purpose of the new regulation is to reduce sulphur oxide (SOx) levels produced across the entire shipping industryā€¦

31 Jul 2019

KR launches KR GEARs for GHG Compliance

Photo: KR

The Korean Register (KR) has established a new greenhouse gas (GHG) online data management system KR GEARs (GHG Emission Authentic Reporting System). The new service will help shipowners to comply with GHG regulations (EU MRV, IMO DCS).KR GEARs supports data collection plan development, data transmission, data report creation and can enhance a fleet's operational efficiency management as well as supporting ship operator's fuel oil sulphur management.By uploading the collectedā€¦

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