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Monday, 25 September 17
CHOICES FOR SHIPPING AS 2020 APPROACHES? - CLARKSONS
 Historically, the fuel of choice for the vast majority of large cargo ships has been heavy fuel oil. But in 2020, sulphur oxide emissions will be capped to 0.5% by IMO convention, ruling out current standard grades of HFO. Both fuel consumers in the shipping industry and producers in the refining industry have now had a little time to consider the potential options to deal with the imminent regulatory change…
SOx Appeal
Nearly a year on from the confirmation that the IMO would proceed with the 2020 global sulphur cap, there is still little certainty as to how shipping market players will react. There are options: either the demand side reacts, and owners fit SOx scrubbers, or investigate alternative fuels, or the supply side (i.e. the refining industry) finds a way to supply low sulphur compliant fuels.
So far, there appears limited take-up of scrubbers by owners (232 vessels recorded). Capex estimates for retrofits range from $1-8m, and until January 2020, such costs represent expenditure with no economic benefits outside ECAs. Similarly, potential LNG fuel retrofits may be complex, expensive and limit refuelling options. Only 369 ships are recorded as LNG fuel capable, 70% of which are LNG carriers; another 263 are on order.
Refining Marine Fuel Demand
Refining Marine Fuel Demand
Most bunkers (circa 80%) are heavy fuel oil. Roughly 5m bpd, or 45% of world fuel oil output, ends up as marine bunkers. In general, refineries are designed to produce as little fuel oil as possible, and may use cracking/coking units to achieve this. But much of what is produced ends up as bunkers: shipping consumes a lot of the least-valued fraction (for example, a 14,000 TEU containership, spending 70% of its time at sea at 18 knots, might burn more than 23,000t of HFO per annum).
The choice for ECAs has been gasoil (MGO) to achieve 0.1% sulphur, and 5% of gas oil production ends up as bunkers. However, gas oil, kerosene and gasoline are priced higher because they have uses as land/air transportation fuels. It is unlikely that come 2020, there would be sufficient volumes available of gasoil to fuel the global shipping industry. At a time of weak prices, oil companies are cutting both up and downstream capex, and appear to have little incentive to build new infrastructure to desulphurise fuel oil. Even if new refinery investment was made, refiners would be likely to prioritise additional gasoline production.
Distilling The Issue Down
So, it seems unlikely that there will suddenly be large amounts of new 0.1% LSFO produced by refineries, nor enough distillates available for ships to run on MGO. Diverting additional gasoil to shipping would imply the payment of similar prices as onshore uses. Hence, the most likely outcome is that low sulphur compliant fuels will be achieved by blending a partial amount of gas oil into HFO, to reduce it below 0.5% sulphur content.
So, it is still not fully clear what the state of play will be in 2020. For both bunker suppliers and owners, investment with over two years to go may be hard to justify, but an unprepared industry in 2020 might be exposed to price spikes. It may well be that a mixture of solutions initially prevails, at least until a consensus emerges over the most economic solution. Have a nice day.
Source: Clarksons
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Friday, 08 December 17
U.S. WEEKLY COAL PRODUCTION UP 11.6 PER CENT WEEK OVER WEEK, EIA DATA SHOWS
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 15.7 million short ton ...
Thursday, 07 December 17
SUPRAMAX: CHINA TO INDIA FIXING AT MID US$ 8000 - FEARNLEYS
Supramax
There has been quite some activity in the Atlantic basin this week, rates out of USG are still firm, trips to Emed gone through at low/m ...
Thursday, 07 December 17
THE ROLE OF COAL - AN INCONVENIENT TRUTH - BENJAMIN SPORTON, WCA
At the climate talks in Bonn, a global alliance to phase out coal was launched. This, along with other rhetoric about developments in the energy se ...
Wednesday, 06 December 17
SHIPPING MARKET INSIGHT - VASILIS VASILEIOU
Moving towards the end of 2017, we are facing a relatively slack period of business in the ship repair sector. The repair market has already mature ...
Tuesday, 05 December 17
DOES BITCOIN HAVE A FUTURE IN SHIPPING? - ALIBRA SHIPPING
Google now receives more search requests for Bitcoin than for Kim Kardashian, Beyoncé and Taylor Swift combined. This week, a shipping compa ...
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Showing 1856 to 1860 news of total 6871 |
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- Rashtriya Ispat Nigam Limited - India
- Miang Besar Coal Terminal - Indonesia
- Tamil Nadu electricity Board
- Port Waratah Coal Services - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Globalindo Alam Lestari - Indonesia
- Mintek Dendrill Indonesia
- Semirara Mining Corp, Philippines
- Videocon Industries ltd - India
- Intertek Mineral Services - Indonesia
- Singapore Mercantile Exchange
- Global Green Power PLC Corporation, Philippines
- Commonwealth Bank - Australia
- GAC Shipping (India) Pvt Ltd
- McConnell Dowell - Australia
- Coastal Gujarat Power Limited - India
- CNBM International Corporation - China
- Krishnapatnam Port Company Ltd. - India
- Larsen & Toubro Limited - India
- Electricity Generating Authority of Thailand
- New Zealand Coal & Carbon
- Indian Energy Exchange, India
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Indo Tambangraya Megah - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coalindo Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- Aboitiz Power Corporation - Philippines
- Vizag Seaport Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- Manunggal Multi Energi - Indonesia
- Therma Luzon, Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Romanian Commodities Exchange
- Posco Energy - South Korea
- Jorong Barutama Greston.PT - Indonesia
- PTC India Limited - India
- Indian Oil Corporation Limited
- The University of Queensland
- Metalloyd Limited - United Kingdom
- Toyota Tsusho Corporation, Japan
- Indika Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Edison Trading Spa - Italy
- Africa Commodities Group - South Africa
- Aditya Birla Group - India
- Bayan Resources Tbk. - Indonesia
- Uttam Galva Steels Limited - India
- Sical Logistics Limited - India
- London Commodity Brokers - England
- Indonesian Coal Mining Association
- Alfred C Toepfer International GmbH - Germany
- Indogreen Group - Indonesia
- Carbofer General Trading SA - India
- Barasentosa Lestari - Indonesia
- GMR Energy Limited - India
- Ministry of Finance - Indonesia
- Samtan Co., Ltd - South Korea
- Central Electricity Authority - India
- Sarangani Energy Corporation, Philippines
- Deloitte Consulting - India
- Gujarat Mineral Development Corp Ltd - India
- Thai Mozambique Logistica
- Chamber of Mines of South Africa
- SMG Consultants - Indonesia
- Bangladesh Power Developement Board
- Bhoruka Overseas - Indonesia
- Kaltim Prima Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- Central Java Power - Indonesia
- Ministry of Mines - Canada
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Maharashtra Electricity Regulatory Commission - India
- Malabar Cements Ltd - India
- Savvy Resources Ltd - HongKong
- Global Business Power Corporation, Philippines
- Thiess Contractors Indonesia
- Directorate Of Revenue Intelligence - India
- CIMB Investment Bank - Malaysia
- Meenaskhi Energy Private Limited - India
- Banpu Public Company Limited - Thailand
- Sree Jayajothi Cements Limited - India
- VISA Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Dalmia Cement Bharat India
- Bharathi Cement Corporation - India
- Eastern Energy - Thailand
- TeaM Sual Corporation - Philippines
- Economic Council, Georgia
- Star Paper Mills Limited - India
- Kobexindo Tractors - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Power Finance Corporation Ltd., India
- Riau Bara Harum - Indonesia
- Bukit Baiduri Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- GVK Power & Infra Limited - India
- Heidelberg Cement - Germany
- Jaiprakash Power Ventures ltd
- Planning Commission, India
- Parry Sugars Refinery, India
- Agrawal Coal Company - India
- Vijayanagar Sugar Pvt Ltd - India
- Cement Manufacturers Association - India
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- Renaissance Capital - South Africa
- Grasim Industreis Ltd - India
- Vedanta Resources Plc - India
- Kepco SPC Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Australian Commodity Traders Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- MS Steel International - UAE
- Sindya Power Generating Company Private Ltd
- International Coal Ventures Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Semirara Mining and Power Corporation, Philippines
- ASAPP Information Group - India
- Kohat Cement Company Ltd. - Pakistan
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Simpson Spence & Young - Indonesia
- Iligan Light & Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- Ind-Barath Power Infra Limited - India
- The Treasury - Australian Government
- Mercuria Energy - Indonesia
- Medco Energi Mining Internasional
- Kideco Jaya Agung - Indonesia
- Energy Link Ltd, New Zealand
- Anglo American - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- PowerSource Philippines DevCo
- Baramulti Group, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Marubeni Corporation - India
- Altura Mining Limited, Indonesia
- Meralco Power Generation, Philippines
- Minerals Council of Australia
- Rio Tinto Coal - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Orica Australia Pty. Ltd.
- Attock Cement Pakistan Limited
- Coal and Oil Company - UAE
- Sojitz Corporation - Japan
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- Lanco Infratech Ltd - India
- Chettinad Cement Corporation Ltd - India
- Oldendorff Carriers - Singapore
- Wilmar Investment Holdings
- Jindal Steel & Power Ltd - India
- Georgia Ports Authority, United States
- Pendopo Energi Batubara - Indonesia
- Binh Thuan Hamico - Vietnam
- Goldman Sachs - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Australian Coal Association
- Orica Mining Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Antam Resourcindo - Indonesia
- Ambuja Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Gujarat Electricity Regulatory Commission - India
- SMC Global Power, Philippines
- Tata Chemicals Ltd - India
- Energy Development Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- Electricity Authority, New Zealand
- Ministry of Transport, Egypt
- India Bulls Power Limited - India
- SN Aboitiz Power Inc, Philippines
- San Jose City I Power Corp, Philippines
- Kumho Petrochemical, South Korea
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Latin American Coal - Colombia
- Sakthi Sugars Limited - India
- Bhatia International Limited - India
- Bhushan Steel Limited - India
- South Luzon Thermal Energy Corporation
- Formosa Plastics Group - Taiwan
- PNOC Exploration Corporation - Philippines
- Mercator Lines Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bulk Trading Sa - Switzerland
- Wood Mackenzie - Singapore
- Parliament of New Zealand
- Siam City Cement - Thailand
- Trasteel International SA, Italy
- IEA Clean Coal Centre - UK
- The State Trading Corporation of India Ltd
- Makarim & Taira - Indonesia
- Standard Chartered Bank - UAE
- White Energy Company Limited
- Gujarat Sidhee Cement - India
- LBH Netherlands Bv - Netherlands
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