Thursday, May 28, 2020

Low Sulphur Fuel Oil News

Total Lubmarine's Talusia Universal Gains NOL from WinGD

Total Lubmarine’s Talusia Universal (BN57) has received a No Objection Letter (NOL) from WinGD for all fuels (liquid and gas) with a sulphur content 0.00%S - 1.50%S.The NOL was awarded with no restrictions following the successful completion of two rigorous tests carried out on two different vessels fitted with W6X72 engines.The tests were conducted on split engines comparing Talusia Universal with a BN40 reference Cylinder Lube Oil (CLO). One test carried out with compliant VLSFO <0.5%S…

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Most Bunker Sales in Singapore are Low-sulphur Fuels -BIMCO

Low-sulphur fuels accounted for 84% of total February sales in Singapore, slightly up from 83% in January. The sale of low-sulphur fuel oil (LSFO) made up the largest component at 71.5%, with marine gas oil (MGO) accounting for 12.5%, BIMCO reports.Total bunker sales in February fell 16% to 3.9 million metric tons compared with January, reflecting lower demand for shipping as the coronavirus paralyzed intra-Asian supply chains.Now that both the sulphur cap and the non-compliant fuel oil carriage ban have come into force…

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Maersk to Raise HSFO Bunker Fuel Consumption to 25%

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)

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Low-sulphur Fuel Oil Prices Drop

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 transitioned…

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Low-sulphur Fuel Sales Surge

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 world’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 wave…

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CMA CGM and Total to Develop LNG Ship Refueling in Marseille

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 equivalent…

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Asian Refiners Strive to Finish IMO Preparations

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 approaches…

Photo: Viva Energy

Viva Energy Fuels the Future of Shipping

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…

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Floating Storage for IMO 2020 Fuel builds in Asia

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…

Graph: BIMCO

BIMCO Offers Bunker Fuel Price Monitoring

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.

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New Ship Emission Regs: Dirty Fuel Down but Not Out

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.

"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.
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IMO2020: Asian Hydrogen Demand to Rise

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…

Photo courtesy of AAL

AAL’s Adoption Of IMO 2020 Mandates

With widespread discussion and reporting about the IMO 2020 ‘Sulphur Cap’ 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 sector’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 industry…

Photo: KR

KR launches KR GEARs for GHG Compliance

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 collected…

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Singapore's Ocean Tankers tests IMO-2020 Compliant Fuel

Off the coast of Singapore, the world's largest ship refuelling centre, a bunker barge sidled next to the supertanker Pu Tuo San to fill the giant vessel with a new type of fuel that will meet global standards that start up in January.With a little over five months left until stricter marine fuel rules come into effect, shippers such as Singapore's Ocean Tankers that own the very large crude carrier (VLCC) Pu Tuo San have started testing out lower sulphur fuel to prepare their…

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Chevron Readying IMO-Compliant Fuel

Chevron plans to bring an IMO-compliant 0.5% sulphur shipping fuel blend to the market by the end of the third quarter, a company representative said on Wednesday.Ships will be required to use fuels with a sulphur content of no more than 0.5% from the start of 2020, down from 3.5% currently, under International Maritime Organization (IMO) rules aimed at cutting air pollution."If the shipping company is willing to try it out now we can make it available, but not for continuous purchase," Chevron Fuels Technologist Monique Vermeire told Reuters at an industry conference."I think it will be avail

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Woodmac: 10% of Marine Fuel to be Scrubbed

Recent research from Woodmac makes some fairly bold and insightful predictions on the future of maritime fuel as the clock ticks toward 2020 and new fuel rules from the IMO that will dramatically reduce the level of sulfur emissions from ships.* Research firm Woodmac sees a rise in the use on ships of "scrubbers", the equipment to clean up sulfur emissions, before the International Maritime Organization imposes new rules from Jan.

Hapag-Lloyd to Convert Containership to LNG

As the maritime industry increasingly searches for means to reduce emissions in the face of legislative mandate, from Germany comes news of a unique 'world first' project to convert the 15,000 TEU containership Sajir to LNG, resulting in an estimated reduction of CO2 emissions from 15 to 30 percent.While the use of LNG as fuel in the commercial newbuild ship sector continues to gain traction, the refit of existing ships to LNG has been slower in developing, owed mainly to the…