“Although the forthcoming change in bunker fuel regulation is a key uncertainty, the requirement for cleaner distillate fuels will be supportive to refining earnings and distillate crack spreads for 2020,” said Alan Gelder, Vice President Research – EMEARC Refining and Chemicals, Wood Mackenzie.
Read more here: Bunkerspot
The shipping industry is still considering several options for meeting the regulations of IMO’s global sulphur cap in 2020, according to a recent survey by The Strategy Works. Around 81% of senior technical managers from shipping companies and nearly 60% of lubricant makers and OEMs favour ultra-low sulphur fuel oil to comply with the sulphur limit. Scrubber technologies are the favourite choice of lubricant companies and OEMs with a 67% approval rate whereas only 41% of shipping company employees votes for scrubbers. Distillates fuels and LNG rank in third and fourth positions. Furthermore, the survey revealed fuel oil availability and price as the top concerns among the representatives of shipping companies.
Read more here: Marine Propulsion
According to a report from the Bank of America Merrill Lynch ship owners are likely to go for distillate bunker fuel over other alternatives to heavy fuel oil to meet the requirements of the new global sulphur cap in 2020. Furthermore, BofAML believes that the refining sector is not ready for the changes ahead and questions the infrastructure for LNG bunkering.
Read more here: Ship & Bunker