S.Korean refiners aim to benefit from 2020 shipping mandate

Refinery industry

Refiners in South Korea are planning to invest more than $5 billion in plant upgrades due to the 2020 global sulphur cap. The refiners expect to become one of the biggest beneficiaries of the new regulations whilst many competitors are still waiting to commit to new investments. According to Wood Mackenzie analyst Suresh Sivanadam, the changed regulations are leading to a rise in demand for gasoil from the bunker sector and would push other refiners to look at investments or blending to meet demand.

Read more here: Hellenic Shipping News

Mediterranean bunker fuel prices exceed two-year highs on HSFO backwardation

Bunker fuel prices at various ports in the Mediterranean reached their highest points in over two years last Friday, supported by the tight availability of high sulphur fuel oil in the region. This trend may continue in the short term. More cargoes are expected to be offered for mid-November, which will help rebalance the tight supply side, seeping into the bunker complex for late November, according HSFO sources.

Read more here: Hellenic Shipping News

2020 compliant marine fuel costs a source of headache for ship owners

Not only will the implementation of a sulphur limit starting in 2020 change the fuel quality and availability but also the economics of shipping and particularly on bunker prices. In total 3 million barrels per day of high sulphur fuel oil Bunkers will need to switch to 0.5% sulphur fuel through blending or hydrocracking leading to higher production costs and thus driving up the fuel cost.

Read more here: Hellenic Shipping News

Compliance & enforcement – it’s complicated

Shipping pollution
At a recent LISW forum hosted by IBIA the key discussions focussed on different options for how the upcoming sulphur cap in 2020 can be enforced and how well the compliance will be monitored. IBIA’s IMO representative Unni Einemo told the forum that enforcers should differentiate between intentional non-compliance and non-compliance due to non-availability of compliant fuel oil.

Read the full article on the forum here and join in the debate!