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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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Wednesday, 29 November 17
THERMAL COAL MARKETS WERE A LITTLE BIT MORE SUBDUED - DANIEL HYNES, ANZ
Coal prices were stronger, led by gains in coking coal. Premium hard coking coal jumped above USD200/t for the first time in two months, said Danie ...
Wednesday, 29 November 17
SHIPPING MARKET INSIGHT - VASILIS MOIRIS
In line with most expectations for the end of this month, during the past days the Dry Bulk market realized a significant rebound that sent the BDI ...
Tuesday, 28 November 17
THE DRY BULK MARKET HAS SHOWN A REMARKABLE RECOVERY THIS YEAR - GEORGE LAZARIDIS
The Dry Bulk market has shown a remarkable recovery this year with the average earnings having increased by around 63% this year so far compared to ...
Friday, 24 November 17
U.S. PRODUCED 14.9 MMST FOR THE WEEK ENDING NOV 18; UP 0.9% W/W - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 14.9 million short ton ...
Thursday, 23 November 17
PANAMAX: ANOTHER SLOW AND UNEVENTFUL WEEK; DECREASING FREIGHT RATES IN BOTH HEMISPHERES - FEARNLEYS
Supramax
A quiet start to the week. USG closed last week a bit tighter, and continued into the new week on a positive tone with little concluded, ...
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Showing 1866 to 1870 news of total 6871 |
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- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- White Energy Company Limited
- Sakthi Sugars Limited - India
- Attock Cement Pakistan Limited
- Tamil Nadu electricity Board
- Larsen & Toubro Limited - India
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Sindya Power Generating Company Private Ltd
- Karaikal Port Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Deloitte Consulting - India
- Ministry of Mines - Canada
- Altura Mining Limited, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Maharashtra Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- Electricity Generating Authority of Thailand
- Minerals Council of Australia
- Parliament of New Zealand
- Malabar Cements Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Sarangani Energy Corporation, Philippines
- Energy Link Ltd, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Electricity Authority, New Zealand
- Orica Australia Pty. Ltd.
- Economic Council, Georgia
- Globalindo Alam Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Siam City Cement PLC, Thailand
- PTC India Limited - India
- Coal and Oil Company - UAE
- Eastern Energy - Thailand
- Bayan Resources Tbk. - Indonesia
- MS Steel International - UAE
- Interocean Group of Companies - India
- Kaltim Prima Coal - Indonesia
- CNBM International Corporation - China
- Grasim Industreis Ltd - India
- Vedanta Resources Plc - India
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Renaissance Capital - South Africa
- Neyveli Lignite Corporation Ltd, - India
- ICICI Bank Limited - India
- Indika Energy - Indonesia
- Marubeni Corporation - India
- The Treasury - Australian Government
- Mercuria Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement - Thailand
- Ceylon Electricity Board - Sri Lanka
- Binh Thuan Hamico - Vietnam
- Australian Commodity Traders Exchange
- Bangladesh Power Developement Board
- Bahari Cakrawala Sebuku - Indonesia
- Sree Jayajothi Cements Limited - India
- Merrill Lynch Commodities Europe
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Meralco Power Generation, Philippines
- OPG Power Generation Pvt Ltd - India
- Ministry of Finance - Indonesia
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- Rashtriya Ispat Nigam Limited - India
- Vizag Seaport Private Limited - India
- Samtan Co., Ltd - South Korea
- SN Aboitiz Power Inc, Philippines
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- Straits Asia Resources Limited - Singapore
- AsiaOL BioFuels Corp., Philippines
- The State Trading Corporation of India Ltd
- Intertek Mineral Services - Indonesia
- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
- Thiess Contractors Indonesia
- Romanian Commodities Exchange
- Formosa Plastics Group - Taiwan
- GAC Shipping (India) Pvt Ltd
- Bharathi Cement Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- Edison Trading Spa - Italy
- Singapore Mercantile Exchange
- Makarim & Taira - Indonesia
- Ind-Barath Power Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Rio Tinto Coal - Australia
- Goldman Sachs - Singapore
- Pendopo Energi Batubara - Indonesia
- SMG Consultants - Indonesia
- Kepco SPC Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Chettinad Cement Corporation Ltd - India
- GMR Energy Limited - India
- Ministry of Transport, Egypt
- McConnell Dowell - Australia
- TeaM Sual Corporation - Philippines
- India Bulls Power Limited - India
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Oldendorff Carriers - Singapore
- Semirara Mining Corp, Philippines
- IHS Mccloskey Coal Group - USA
- ASAPP Information Group - India
- GN Power Mariveles Coal Plant, Philippines
- Metalloyd Limited - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Posco Energy - South Korea
- Medco Energi Mining Internasional
- Price Waterhouse Coopers - Russia
- Banpu Public Company Limited - Thailand
- Madhucon Powers Ltd - India
- LBH Netherlands Bv - Netherlands
- CIMB Investment Bank - Malaysia
- South Luzon Thermal Energy Corporation
- Borneo Indobara - Indonesia
- Sojitz Corporation - Japan
- Riau Bara Harum - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhushan Steel Limited - India
- Miang Besar Coal Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Heidelberg Cement - Germany
- Australian Coal Association
- Alfred C Toepfer International GmbH - Germany
- Jaiprakash Power Ventures ltd
- Uttam Galva Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Manunggal Multi Energi - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Indonesian Coal Mining Association
- Antam Resourcindo - Indonesia
- Xindia Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Meenaskhi Energy Private Limited - India
- Baramulti Group, Indonesia
- Bulk Trading Sa - Switzerland
- San Jose City I Power Corp, Philippines
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- Bukit Baiduri Energy - Indonesia
- Parry Sugars Refinery, India
- PowerSource Philippines DevCo
- Bukit Makmur.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- Timah Investasi Mineral - Indoneisa
- Dalmia Cement Bharat India
- Central Java Power - Indonesia
- Gujarat Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Anglo American - United Kingdom
- Global Business Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Iligan Light & Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- SMC Global Power, Philippines
- London Commodity Brokers - England
- Lanco Infratech Ltd - India
- Directorate Of Revenue Intelligence - India
- Eastern Coal Council - USA
- Directorate General of MIneral and Coal - Indonesia
- Chamber of Mines of South Africa
- Global Green Power PLC Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Wood Mackenzie - Singapore
- Semirara Mining and Power Corporation, Philippines
- The University of Queensland
- Coastal Gujarat Power Limited - India
- IEA Clean Coal Centre - UK
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Aditya Birla Group - India
- Cement Manufacturers Association - India
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kapuas Tunggal Persada - Indonesia
- Star Paper Mills Limited - India
- Bhatia International Limited - India
- Leighton Contractors Pty Ltd - Australia
- Videocon Industries ltd - India
- Sical Logistics Limited - India
- Orica Mining Services - Indonesia
- Thai Mozambique Logistica
- Africa Commodities Group - South Africa
- Mintek Dendrill Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- Jindal Steel & Power Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Indian Oil Corporation Limited
- Mjunction Services Limited - India
- Barasentosa Lestari - Indonesia
- Therma Luzon, Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Mercator Lines Limited - India
- New Zealand Coal & Carbon
- Planning Commission, India
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