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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, 15 November 17
MARKET INSIGHT - LINOS KOGEVINAS
For another week, oil seems to be the most volatile and interesting commodity to watch. In this segment we’ll look at some of the major facto ...
Tuesday, 14 November 17
COAL STOCKS RUN SHORT, CENTRE TO GET DAILY UPDATE ON STOCKS - DECCAN CHRONICLE
Facing a shortage of coal for thermal power generation in the country, the Central Electricity Authority (CEA) has issued guidelines for maintainin ...
Tuesday, 14 November 17
IN 2018, WORLD OIL DEMAND IS FORESEEN REACHING 1.51 MB/D - OPEC
Oil Market Highlights - OPEC
The OPEC Reference Basket averaged $55.50/b in October, gaining $2.06 over the previous month and reaching the hi ...
Monday, 13 November 17
THERMAL COAL PRICES WERE RELATIVELY UNCHANGED - DANIEL HYNES
Coal prices were broadly higher, driven by strong gains in the metallurgical coal market said Daniel Hynes, Senior Commodity Strategist at ANZ in h ...
Monday, 13 November 17
THIESS AWARDED $300M SANGATTA EXPANSION CONTRACT
Thiess has been awarded a $300 million contract by Kaltim Prima Coal (KPC) to expand operations at Sangatta coal mine in East Kalimantan, Indonesia ...
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Showing 1881 to 1885 news of total 6871 |
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- Riau Bara Harum - Indonesia
- Global Business Power Corporation, Philippines
- Dalmia Cement Bharat India
- Planning Commission, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Neyveli Lignite Corporation Ltd, - India
- Cigading International Bulk Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- Orica Mining Services - Indonesia
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Malabar Cements Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- White Energy Company Limited
- New Zealand Coal & Carbon
- Romanian Commodities Exchange
- McConnell Dowell - Australia
- Georgia Ports Authority, United States
- PNOC Exploration Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- ASAPP Information Group - India
- Cement Manufacturers Association - India
- PowerSource Philippines DevCo
- Rashtriya Ispat Nigam Limited - India
- Mjunction Services Limited - India
- Latin American Coal - Colombia
- Aditya Birla Group - India
- Bukit Asam (Persero) Tbk - Indonesia
- The Treasury - Australian Government
- Straits Asia Resources Limited - Singapore
- Siam City Cement PLC, Thailand
- Bhoruka Overseas - Indonesia
- VISA Power Limited - India
- Antam Resourcindo - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Agrawal Coal Company - India
- Central Electricity Authority - India
- South Luzon Thermal Energy Corporation
- London Commodity Brokers - England
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Deloitte Consulting - India
- Australian Commodity Traders Exchange
- Larsen & Toubro Limited - India
- Carbofer General Trading SA - India
- SMG Consultants - Indonesia
- Samtan Co., Ltd - South Korea
- Economic Council, Georgia
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Central Java Power - Indonesia
- Tata Chemicals Ltd - India
- Xindia Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- San Jose City I Power Corp, Philippines
- IEA Clean Coal Centre - UK
- Price Waterhouse Coopers - Russia
- Semirara Mining Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Karaikal Port Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Lanco Infratech Ltd - India
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- Chamber of Mines of South Africa
- Ministry of Finance - Indonesia
- Jindal Steel & Power Ltd - India
- Indian Energy Exchange, India
- Sree Jayajothi Cements Limited - India
- Trasteel International SA, Italy
- Jorong Barutama Greston.PT - Indonesia
- Madhucon Powers Ltd - India
- Commonwealth Bank - Australia
- Africa Commodities Group - South Africa
- Indika Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- PetroVietnam Power Coal Import and Supply Company
- Bhushan Steel Limited - India
- Salva Resources Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Coal and Oil Company - UAE
- Maheswari Brothers Coal Limited - India
- Minerals Council of Australia
- Vijayanagar Sugar Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Posco Energy - South Korea
- Videocon Industries ltd - India
- Renaissance Capital - South Africa
- TeaM Sual Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Intertek Mineral Services - Indonesia
- Wilmar Investment Holdings
- The University of Queensland
- Metalloyd Limited - United Kingdom
- Bangladesh Power Developement Board
- International Coal Ventures Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- SMC Global Power, Philippines
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Bhatia International Limited - India
- Star Paper Mills Limited - India
- Singapore Mercantile Exchange
- Bulk Trading Sa - Switzerland
- Simpson Spence & Young - Indonesia
- Ministry of Transport, Egypt
- CNBM International Corporation - China
- Sakthi Sugars Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Goldman Sachs - Singapore
- Globalindo Alam Lestari - Indonesia
- PTC India Limited - India
- Indian Oil Corporation Limited
- Sarangani Energy Corporation, Philippines
- Tamil Nadu electricity Board
- Directorate General of MIneral and Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Medco Energi Mining Internasional
- Leighton Contractors Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Savvy Resources Ltd - HongKong
- Global Green Power PLC Corporation, Philippines
- Vedanta Resources Plc - India
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- European Bulk Services B.V. - Netherlands
- Kaltim Prima Coal - Indonesia
- Essar Steel Hazira Ltd - India
- Thai Mozambique Logistica
- Thiess Contractors Indonesia
- Billiton Holdings Pty Ltd - Australia
- Indonesian Coal Mining Association
- Krishnapatnam Port Company Ltd. - India
- Vizag Seaport Private Limited - India
- Jaiprakash Power Ventures ltd
- IHS Mccloskey Coal Group - USA
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Australian Coal Association
- Electricity Authority, New Zealand
- Alfred C Toepfer International GmbH - Germany
- GMR Energy Limited - India
- India Bulls Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bahari Cakrawala Sebuku - Indonesia
- Coalindo Energy - Indonesia
- Meralco Power Generation, Philippines
- Bayan Resources Tbk. - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Marubeni Corporation - India
- Power Finance Corporation Ltd., India
- Energy Development Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Attock Cement Pakistan Limited
- CIMB Investment Bank - Malaysia
- The State Trading Corporation of India Ltd
- Bharathi Cement Corporation - India
- Chettinad Cement Corporation Ltd - India
- Rio Tinto Coal - Australia
- Eastern Coal Council - USA
- Coastal Gujarat Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Baramulti Group, Indonesia
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Binh Thuan Hamico - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Independent Power Producers Association of India
- Kapuas Tunggal Persada - Indonesia
- Mintek Dendrill Indonesia
- Bukit Makmur.PT - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Kumho Petrochemical, South Korea
- Timah Investasi Mineral - Indoneisa
- Grasim Industreis Ltd - India
- Manunggal Multi Energi - Indonesia
- Uttam Galva Steels Limited - India
- MS Steel International - UAE
- AsiaOL BioFuels Corp., Philippines
- Port Waratah Coal Services - Australia
- Borneo Indobara - Indonesia
- Interocean Group of Companies - India
- Indogreen Group - Indonesia
- GVK Power & Infra Limited - India
- Iligan Light & Power Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Holcim Trading Pte Ltd - Singapore
- Orica Australia Pty. Ltd.
- Siam City Cement - Thailand
- Ambuja Cements Ltd - India
- Ind-Barath Power Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Barasentosa Lestari - Indonesia
- Pendopo Energi Batubara - Indonesia
- Parry Sugars Refinery, India
- SN Aboitiz Power Inc, Philippines
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