China to extend sulfur limitations for bunker fuels along entire coastline

China to extend sulfur limitations for bunker fuels along entire coastline

Hunan, China — China is set to tighten its sulfur-limit restrictions for ships by extending the 0.5% bunker fuel sulfur limit from the initially designated Emission Control Areas (ECAs) to the entire coastline, industry sources told Platts.

In view of the rising concerns over environmental pollution, tightening sulfur-limit restrictions is no surprise, a Beijing-based coal trader noted, adding that coastal shipowners will have to bear the brunt, and in turn, may be forced to raise coastal freights.

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China’s tighter sulfur limit rule for ships to spur LSMGO, LSFO demand

China’s tighter sulfur limit rule for ships to spur LSMGO, LSFO demand

Singapore — In less than a month, China is set to tighten its sulfur limit restrictions for ships by imposing a 0.5% bunker fuel sulfur limit in not only its initially designated Emission Control Areas but also along its entire coastline, a move likely to spur demand for cleaner fuels, industry sources said.

“The policy will further support demand for LSMGO,” a bunker trader with state-owned Chinese trader, Sinochem, told S&P Global Platts.

Low sulfur fuel oil demand is also set for a significant rise, thanks to the new rule, sources said.

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China’s plan to cut shipping emissions

China port pollution
The shipping industry is still waiting for the new rules on marine fuel oil to be finally clarified. Meanwhile, China is already moving toward adopting the 0.5 % sulphur limits, mainly at major ports along the Yangtze River. In 2016 five ports implemented the regulations and six more key ports are following towards the end of 2017. Last year the Chinese government started phasing-in regulations forcing ships to use fuels with low-sulphur content while at berth and near major Chinese ports as an estimated 18,000 premature deaths in China in 2013 were caused by air pollution from ocean-going ships.

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