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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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Monday, 06 November 17
MARINE BUNKER EXCHANGE EXPECTS BUNKER PRICES WILL CONTINUE UPWARD TREND NEXT WEEK
World fuel indexes rose during the week, supported by main oil producers’ statements about possible extension of oil production cut agreement ...
Monday, 06 November 17
THE THERMAL COAL MARKET CAME UNDER SOME PRESSURE AS THE OUTLOOK FOR DEMAND WEAKENED - DANIEL HYNES
Commodities were mixed as investors grappled with a revised tax plan in the US amid a rising USD said Daniel Hynes in his linked in post.
Acco ...
Monday, 06 November 17
THE FREIGHT MARKET WAS CONTINUED TO SOFTEN THIS PAST WEEK; BCI DOWN 184 POINT WEEK OVER WEEK
COALspot.com: The freight market was continued to soften this past week compared to the previous week, as BDI and all segments except Panamax index ...
Friday, 03 November 17
U.S. COAL PRODUCTION FELL WEEK-OVER-WEEK, EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 14.5 million short ton ...
Wednesday, 01 November 17
SHIPPING MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
As it was expected, the strong dry bulk freight market of the past couple of months has inspired similar activity in the second-hand market. Noneth ...
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Showing 1896 to 1900 news of total 6871 |
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- Miang Besar Coal Terminal - Indonesia
- ASAPP Information Group - India
- Parry Sugars Refinery, India
- Siam City Cement PLC, Thailand
- Romanian Commodities Exchange
- Power Finance Corporation Ltd., India
- Aboitiz Power Corporation - Philippines
- Vizag Seaport Private Limited - India
- Sojitz Corporation - Japan
- Global Business Power Corporation, Philippines
- Videocon Industries ltd - India
- Economic Council, Georgia
- Essar Steel Hazira Ltd - India
- Mintek Dendrill Indonesia
- Jindal Steel & Power Ltd - India
- Wood Mackenzie - Singapore
- Aditya Birla Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Central Java Power - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Binh Thuan Hamico - Vietnam
- Bulk Trading Sa - Switzerland
- Singapore Mercantile Exchange
- Trasteel International SA, Italy
- Malabar Cements Ltd - India
- Mercuria Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Siam City Cement - Thailand
- Kumho Petrochemical, South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coalindo Energy - Indonesia
- Bangladesh Power Developement Board
- Kobexindo Tractors - Indoneisa
- PNOC Exploration Corporation - Philippines
- Wilmar Investment Holdings
- Savvy Resources Ltd - HongKong
- Tata Chemicals Ltd - India
- Lanco Infratech Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Georgia Ports Authority, United States
- Ministry of Finance - Indonesia
- Australian Coal Association
- Indogreen Group - Indonesia
- Minerals Council of Australia
- Sical Logistics Limited - India
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- Billiton Holdings Pty Ltd - Australia
- CNBM International Corporation - China
- AsiaOL BioFuels Corp., Philippines
- Carbofer General Trading SA - India
- Sree Jayajothi Cements Limited - India
- Sinarmas Energy and Mining - Indonesia
- Medco Energi Mining Internasional
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Eastern Coal Council - USA
- Coastal Gujarat Power Limited - India
- Borneo Indobara - Indonesia
- GVK Power & Infra Limited - India
- Neyveli Lignite Corporation Ltd, - India
- San Jose City I Power Corp, Philippines
- White Energy Company Limited
- Australian Commodity Traders Exchange
- Africa Commodities Group - South Africa
- Petron Corporation, Philippines
- Orica Australia Pty. Ltd.
- GN Power Mariveles Coal Plant, Philippines
- Orica Mining Services - Indonesia
- Altura Mining Limited, Indonesia
- Barasentosa Lestari - Indonesia
- Oldendorff Carriers - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Deloitte Consulting - India
- Parliament of New Zealand
- Rio Tinto Coal - Australia
- Madhucon Powers Ltd - India
- Eastern Energy - Thailand
- Standard Chartered Bank - UAE
- Ministry of Transport, Egypt
- Chettinad Cement Corporation Ltd - India
- Marubeni Corporation - India
- Meenaskhi Energy Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Indian Energy Exchange, India
- Iligan Light & Power Inc, Philippines
- Latin American Coal - Colombia
- OPG Power Generation Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Directorate Of Revenue Intelligence - India
- Leighton Contractors Pty Ltd - Australia
- Electricity Generating Authority of Thailand
- Gujarat Mineral Development Corp Ltd - India
- MS Steel International - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- TeaM Sual Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Energy Development Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Ind-Barath Power Infra Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- McConnell Dowell - Australia
- Indonesian Coal Mining Association
- Thai Mozambique Logistica
- European Bulk Services B.V. - Netherlands
- Dalmia Cement Bharat India
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- Sarangani Energy Corporation, Philippines
- Interocean Group of Companies - India
- Salva Resources Pvt Ltd - India
- Electricity Authority, New Zealand
- Indian Oil Corporation Limited
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- SMG Consultants - Indonesia
- Xindia Steels Limited - India
- Star Paper Mills Limited - India
- Renaissance Capital - South Africa
- Intertek Mineral Services - Indonesia
- The University of Queensland
- International Coal Ventures Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Meralco Power Generation, Philippines
- Indika Energy - Indonesia
- Uttam Galva Steels Limited - India
- Commonwealth Bank - Australia
- Semirara Mining Corp, Philippines
- Riau Bara Harum - Indonesia
- Metalloyd Limited - United Kingdom
- Attock Cement Pakistan Limited
- Makarim & Taira - Indonesia
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- Goldman Sachs - Singapore
- Bhushan Steel Limited - India
- The Treasury - Australian Government
- Bukit Makmur.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Merrill Lynch Commodities Europe
- Pendopo Energi Batubara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Central Electricity Authority - India
- Price Waterhouse Coopers - Russia
- Ceylon Electricity Board - Sri Lanka
- Heidelberg Cement - Germany
- Sakthi Sugars Limited - India
- Maheswari Brothers Coal Limited - India
- Alfred C Toepfer International GmbH - Germany
- Kepco SPC Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Anglo American - United Kingdom
- Thiess Contractors Indonesia
- GMR Energy Limited - India
- Kaltim Prima Coal - Indonesia
- Formosa Plastics Group - Taiwan
- South Luzon Thermal Energy Corporation
- India Bulls Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- Jaiprakash Power Ventures ltd
- Vedanta Resources Plc - India
- Planning Commission, India
- Chamber of Mines of South Africa
- SMC Global Power, Philippines
- London Commodity Brokers - England
- Bhatia International Limited - India
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- LBH Netherlands Bv - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Indo Tambangraya Megah - Indonesia
- VISA Power Limited - India
- Kideco Jaya Agung - Indonesia
- The State Trading Corporation of India Ltd
- Port Waratah Coal Services - Australia
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Samtan Co., Ltd - South Korea
- Ministry of Mines - Canada
- Kapuas Tunggal Persada - Indonesia
- ICICI Bank Limited - India
- Cement Manufacturers Association - India
- IHS Mccloskey Coal Group - USA
- Toyota Tsusho Corporation, Japan
- Larsen & Toubro Limited - India
- Grasim Industreis Ltd - India
- New Zealand Coal & Carbon
- Global Green Power PLC Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- PTC India Limited - India
- Independent Power Producers Association of India
- Edison Trading Spa - Italy
- CIMB Investment Bank - Malaysia
- Sindya Power Generating Company Private Ltd
- Coal and Oil Company - UAE
- Bharathi Cement Corporation - India
- Rashtriya Ispat Nigam Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Antam Resourcindo - Indonesia
- Mercator Lines Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Karaikal Port Pvt Ltd - India
- Baramulti Group, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Global Coal Blending Company Limited - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
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