Marine Link
Sunday, November 19, 2017

Residual Fuel Oil News

S.Korean Refiners Look to Cash in on 2020 Mandate

File Image (CREDIT: AdobeStock / (c) Sharrif Che'Lah)

Three refiners to spend more than $5 bln to upgrade or add units. South Korean refiners are planning to spend over $5 billion on plant upgrades in response to tighter rules on shipping fuel, boosting production of low-sulphur fuel oil as well as other high-end products. The refiners hope the investment, which comes ahead of the 2020 introduction of the new rules, will make them one of the biggest beneficiaries of the new regulations, with many competitors still waiting to commit to new spending. "Not many refiners are doing so.

North P&I Publishes 3rd Edition Of Bunker Claims Prevention Guide

The ‘A’ rated, 150 million GT North of England P&I club has published a third edition of its popular loss-prevention guide ‘Bunker Claims Prevention’, which aims to help shipowners avoid potentially large losses arising from loading unsuitable or insufficient marine fuel oil. The new edition reflects recent changes to international marine fuel specifications introduced in ISO 8217:2010. Head of loss prevention Tony Baker says, ‘The guide tackles bunker quality and quantity issues…

BOSTCO Opening to Ease Houston Ship Channel Congestion

When Battleground Oil Specialty Terminal (BOSTCO) on the Houston Ship Channel starts operations in October, ship channel congestion is likely to be lessened. BOSTCO will start operations in October 2013 with 2.84 million barrels of residual fuel oil and feedstock storage, about 40% of its earlier-announced 7.1 million-barrel capacity, report Platts, citing sources close to the project and Gulf Coast fuel oil traders. The BOSTCO terminal will offer two ship docks and three barge docks. The ship dock will be able to accommodate ships with a beam of 168 feet and draft of 45 feet and displacement tonnage of 205,000 mt. The barge docks can load a total of 12 barges each having a maximum length of 300 feet and a draft of 12 feet, according the company's website.

Hornbeck-Leevac Expands Tug and Barge Fleet in Northeast U.S.

Hornbeck-Leevac Marine Services has acquired the Spentonbush/Red Star Group marine transportation fleet for $28 million, and has entered into a strategic alliance with Amerada Hess Corp. in the Northeast U.S. market. The vessels acquired include nine ocean-going tugs and ocean-going tank barges. In addition to the acquisition of the Hess fleet, Hornbeck-Leevac has signed a long-term contract with Amerada Hess with the understanding that it will be excluseive marine logistics provider and transporter of petroleum products in the Northeast U.S. These vessels will be utilized primarily in the transportation of gasoline, and residual fuel oil between refineries, distribution terminals and ships lightering across the Eastern Seaboard.

OW Bunker Contracted for BOSTCO Terminal

BOSTCO Terminal (photo courtesy of Kinder Morgan Energy Partners)

OW Bunker announced that it has signed an exclusive alliance with UNIPEC America to provide products at the new BOSTCO (Battleground Oil Specialty Terminal) fuel oil terminal in Houston. The move further expands the company’s physical presence in the region, complementing its existing operations in the Gulf of Mexico and Panama. UNIPEC America has negotiated the rights to supply bunkers ex-pipe at the new BOSTCO terminal. In conjunction with this, OW Bunker has developed a partnership agreement with UNIPEC America to provide calling vessels with quality products and services from January 2014.

S-Oil, Petronas Ink Long-term LNG Deal

South Korea's third-largest refiner S-Oil Corp signed a long-term liquefied natural gas (LNG) supply contract with Malaysia's Petronas for 15 years starting from next year, the North Asia company said on Friday. S-Oil expects to buy 700,000 tonnes of LNG per year from state-owned Petronas from March 2018 through March 2033, it said in a stock filing exchange. "We have inked the deal on good terms for our company amid the current favourable LNG market conditions," said the refiner in the filing. S-Oil, whose main shareholder is Saudi Aramco, declined to provide price details for the deal. The refiner said in a separate statement the deal was part of its efforts to ensure stable supplies of LNG.

Quick Spill Clean-up Expected Off Long Island

Clean-up activities of an oil spill that affected about 25 miles (40 km) off the north shore of Long Island, New York, are expected to be complete by the end of the week, the U.S. Coast Guard said Tuesday. The spill of residual fuel oil, a heavy oil used in power generation, was discovered Friday, originating from a hole in a barge transporting 48,000 barrels of the fuel from Tosco Corp's Bayway refinery in Bayonne, New Jersey to the NRG Energy Inc.'s power plant in Montville, Connecticut, the Coast Guard said. The amount of oil spilled from the Rhode Island was not available but clean-up efforts have already reduced the affected area to about 10 miles (16 km), Petty Officer Tom Sperduto said. "We expect it to take another two or three days.

Spectro On-line Sulfur Analyzer

The SPECTRO 682T-HP On-Line High-Pressure Sulfur Analyzer from Spectro Analytical Instruments is an instrument for sulfur measurement of crude and other highly viscous hydrocarbons, including bunker fuels, residual fuel oils and heavy hydrocarbons. The instrument has been installed at refineries, pipelines, blending operations, terminals and other storage facilities. Applications include bunker fuel blending to meet MARPOL Annex VI sulfur restrictions, interface detection of different grade fuels delivered via pipelines…

Marine Safety Alert: Fuel Switching Safety

A Marine Safety Alert was issued to increase awareness and reiterate general guidance on fuel systems and fuel switching safety in an effort to prevent propulsion losses. After a noted decrease, there has been a recent increase in the number of reported loss of propulsion incidents on deep draft vessels within the Eleventh Coast Guard District. Coast Guard studies and review of marine casualties indicate that lack of maintenance and testing of certain systems, including fuel oil systems, is one of the leading causes of propulsion failures. Advanced planning and careful fuel system management are critical to safely switching fuels. This is especially important if fuel switching is not routine practice.

Op/Ed: Shipping's Energy Challenge

© Pere Sanz / Adobe Stock

There is no more economically and environmentally efficient way of transporting the world’s goods than by sea. Compared to air or road freight, based on per ton of cargo shipped, shipping’s carbon footprint is small. Yet with the 60,000 or so ships that transport 80 percent of the world’s goods emitting about 1.12bn tons of CO2 each year, almost 4.5 percent of all global greenhouse gas emissions, it is unequivocal that we need a viable way of reducing our environment impact. As other sectors reduce their carbon footprint shipping’s is likely to increase as an overall percentage.

Stolt-Nielsen Takes Stake in LNG Logistics Startup

Stolt-Nielsen Limited has announced  that Stolt-Nielsen Gas Ltd. (SNG), SunLNG Holding Ltd. (SunLNG) and LNGaz Ltd. have agreed to form a new startup focused on the development of small-scale LNG liquefaction and logistics services in Becancour, Quebec, Canada. The new joint venture, to be named Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of US$ 20 million with SNG owning 50% of the venture. Stolt LNGaz intends to provide clean burning natural gas to remote mining operations and other industrial customers in northeast Canada at a substantially lower cost than diesel and residual fuel oil, which are the primary energy sources today.

Stolt-Nielsen Gas Takes Major Stake in LNG Logistics Start-Up

Courtesy Stolt-Nielsen Limited

Stolt-Nielsen Limited (Oslo Børs: SNI) announced today that Stolt-Nielsen Gas Ltd. (SNG), SunLNG Holding Ltd. (SunLNG) and LNGaz Ltd. have agreed to form a new start-up focused on the development of small-scale LNG liquefaction and logistics services in Bécancour, Québec, Canada. The new joint venture, to be named Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of US$ 20 million with SNG owning 50% of the venture.

Purvin & Gertz Residual Fuel Market Outlook

Purvin & Gertz announced the completion of the Residual Fuel Market Outlook: Impact of Bunker Quality Changes on Marine Fuels & Refining. This comprehensive study includes an analysis of the issues, balances and economics of bunker fuel, stationary fuel oil and residual refinery feedstocks. Emissions limits agreed by the International Maritime Organization (IMO) and rapidly being adopted by nations will change marine bunker fuel qualities and indeed the type of fuel consumed. This report provides insight into the complex inter-industry compliance issue. The possible adoption of onboard ship scrubbing is analyzed in the study through two compliance scenarios, each providing a complete balance and pricing analysis.

Crowley Secures Wayward Oil Tanker

Crowley Marine Services successfully secured the wayward oil tanker, Atigun Pass, Thanksgiving weekend as it drifted within 20 miles of Oregon's pristine coastline. The decommissioned Atigun Pass, similar to the Exxon Valdez in size at three football fields in length, was en route from a Portland shipyard to Shanghai, China, for scrapping when the towline from the Chinese tug that was towing it snapped. When the towline parted early November 19, the tanker was about 100 miles west of Tillamook. "The vessel contained more than 20,000 gallons of residual fuel oil, too thick and sticky to be pumped from its tank, and there was potential for a medium size spill and a costly wreck removal if it ran aground," said Todd Busch, director, ship assists & escort services.

Crowley Secures Wayward Oil Tanker and Prevents Harm

Crowley Marine Services successfully secured the wayward oil tanker, Atigun Pass, Thanksgiving weekend as it drifted within 20 miles of Oregon’s coastline. The decommissioned Atigun Pass, similar to the Exxon Valdez in size at three football fields in length, was en route from a Portland shipyard to Shanghai, China, for scrapping when the towline from the Chinese tug that was towing it snapped. When the towline parted early November 19, the tanker was about 100 miles west of Tillamook. “The vessel contained more than 20,000 gallons of residual fuel oil, too thick and sticky to be pumped from its tank, and there was potential for a medium size spill and a costly wreck removal if it ran aground,” said Todd Busch, director, ship assists & escort services.

IMO Low-Sulfur Requirements to Disrupt Industries

Photo:  International Maritime Organization (IMO)

The International Maritime Organization (IMO) recently confirmed that global refiners and shippers must comply with new regulations to reduce the sulfur content in marine bunker fuels by January 2020—five years earlier than many expected. As a result, both the global refining and shipping industries will experience rapid change and significant cost and operational impacts, according to new analysis from IHS Markit, the leading global source of critical information and insight.

IBIA on Global sulphur cap

Image: International Bunker Industry Association

Even if, in theory, globally there is refining capacity to produce sufficient fuels to meet the 0.50% sulphur cap in 2020, if you take a more detailed look the picture is very different. In fact, several countries told the 70th session of the Marine Environment Protection Committee (MEPC 70) that they would not have sufficient refining capacity to offer compliant fuels to ships in 2020. Some of these countries are major bunker markets today, providing large quantities of residual fuel oil to ships calling at their ports…

LNG Marine Fuel Taking Hold in America: FMC Commissioner Speaks

Commissioner William P. Doyle: Photo credit FMC

In his speech at the LNG Export & Export & Infrastructure Conference Federal Maritime Commissioner Doyle gives insights on the consequences of the adoption of Liquefied Natural Gas (LNG) as a marine fuel in the United States. I am a Commissioner with the U.S. Federal Maritime Commission. The Federal Maritime Commission is an independent regulatory agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer.

Cheaper Fuel to Boost Container Shipping

Photo: Tanner Matheny

Lower oil prices are sharply reducing the cost of shipping merchandise from Asia to the United States and Europe as the cost of bunker fuel tumbles. Container shipping companies deal with the volatility in fuel prices by adding a separate bunker adjustment factor or fuel surcharge to their freight rates. Fuel can account for more than 60 percent of the total operating costs of moving freight across the oceans so the surcharges are one of the most important elements of total transportation costs.

Halter to Convert Bouchard Barge, Tug to ITB Unit

Halter Marine, Inc., has signed a contract with Bouchard Transportation Co., Inc. of Hicksville, N.Y. to convert a 446-ft. single hulled, ocean-going petroleum tank barge (B. No. 155) to a double hull to meet the requirements of OPA 90. The contract also includes options for similar conversions of two additional pairs of sister vessels, all of which were constructed at Halter shipyards. The barge's conversion will be accomplished through the addition of an outside hull. As a result, the barge's dimensions of 446 x 74 x 32.5 ft. will be increased to 468 x 85.5 x 38 ft. and ocean load line capacity will increase from 125,000 barrels of residual fuel oil to 158,000 barrels with segregated ballast. Halter will also install an Intercon connection system on the barge and 127-ft.

North American ECA – Today

On August 1, 2012, the North American Emissions Control Area (NAECA) took effect, mandating the use of 1.0% sulfur Heavy Fuel Oil (HFO) or residual fuel oil for ships within 200 miles of the continent of North America. California has mandated the use of distillate fuel when ships are within 24 miles of its coastline since July 1, 2009. Lessons learned from California’s experience with distillate fuels may benefit operators as the next phase of NAECA comes into effect (January 1…

LR Addresses Fuel Changes when Entering and Exiting ECAs

From January 1, 2015, the maximum sulphur content of fuel oil used within the MARPOL Annex VI Emission Control Areas (ECAs) will be 0.10%, unless using an approved alternative means for controlling sulphur emissions. In most cases, the fuel used will be low-sulphur distillate oil (LSDO). Many ships operating both inside and outside ECAs will changeover between LSDO and residual fuel oil (RFO) when entering and exiting ECAs. The Lloyd’s Register (LR) Rule requirements for fuel oil systems are contained within Pt.5 Ch.14 sections 2, 3 and 4; these contain design requirements for systems which are to operate on either LDSO or RFO grades, or both. LR also offers the optional descriptive note, DIST, for shipowners and operators applying industry best practice to the use of LSDO.

Hamworthy Acquires Krystallon

Hamworthy has completed the acquisition of Krystallon Limited. Fluid handling systems supplier Hamworthy has acquired the company that pioneered gas scrubber development as a commercially viable alternative to costly low sulphur content distillates, to comply with new International Maritime Organization (IMO) MARPOL Annex VI regulations on emissions. Last year IMO agreed the concept of Emission Control Areas, ruling that the maximum sulphur content in fuels used in such zones must be cut to 1.5%, then to 1% by 2012, and to 0.1% in 2015. The regulations are already in force in the North Sea, English Channel and the Baltic. Similarly the US and Canada have applied for ECA status for the waters extending 200 Nm from their coasts. Other countries are expected to follow suit.

Maritime Reporter Magazine Cover Nov 2017 - The Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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