Bunker industry must ensure supply of high sulphur fuel oil bunkers continues beyond 2020: IMO

IMO sulphur cap

At a recent event for the refining and petrochemical industry held in Athens, the IMO stressed that the bunker industry must keep providing the supply of high sulphur fuel oil bunkers even after the new regulations of the 0.5% global sulphur cap on marine fuel comes into force in 2020. According to IMO’s Edmund Hughes, discussions should focus on how to ensure consistent implementation of the sulphur limit as there will be no delay to a 2020 start date for the new rules. This issue will be addressed in the next session of IMO’s sub-committee on Pollution Prevention and Response in February 2018 and during an intersessional working group to be held later in 2018. “Compliance, enforcement and monitoring will be the remit and responsibility of both flag States and port States,” IMO said in a statement following Hughes’ presentation.

Read more here: Ship & Bunker

ExxonMobil commits to work with shipping industry on multi-fuel landscape

The international oil and gas company ExxonMobil will still be engaged with the shipping industry as the market changes into a multi-fuel landscape under the global sulphur cap regulation from 2020. As Iain White, ExxonMobil Marine Fuels and Lubricants global marketing manager said ExxonMobil is going to be involved in making all the options of the multi-fuel scenario available including LNG, high sulphur fuel oil use with abatement technology, 0.1% and 0.5% sulphur fuel oil as well as blends and distillates.

Read more here: Marine Propulsion

How much will 2020 cost?

There have been a number of estimates of the magnitude of the cost to the shipping community of implementing the global 0.50% sulphur cap in 2020.

Recently, Wood Mackenzie grabbed the headlines by saying global bunker fuel costs could rise by up $60 billion annually from 2020, in a full compliance scenario, when the International Maritime Organization (IMO) regulation kicks in. The underlying assumption for this headline figure was based on the majority of the world fleet switching from high sulphur fuel oil (HSFO) to marine gas oil (MGO). “A combination of higher crude prices and tight availability of MGO could take the price of MGO up to almost four times that of fuel oil in 2016, and eventually cost the entire industry additional US$60 billion annually,” Wood Mackenzie said in a press release about the findings of a study undertaken by the research and consultancy firm.

 

You can find the whole article at: http://ibia.net/how-much-will-2020-cost/