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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, 25 October 17
COAL MARKETS REMAINED SUBDUED - DANIEL HYNES
Coal markets remained subdued.
Daniel Hynes, Senior Commodity Strategist at ANZ, Coking coal prices were unchanged amid an absence of fresh of ...
Wednesday, 25 October 17
SHIPPING MARKET REPORT - INTERMODAL
While the majority of perspective Buyers in the dry bulk second-hand market is currently focusing on modern tonnage, there is also increased activi ...
Tuesday, 24 October 17
KOMIPO INVITED BIDS FOR MIN. 4600 NAR BLENDED SUB-BITUMINOUS COAL OF INDONESIAN ORIGIN FOR BORYEONG OR NEW BORYEONG POWER PLANT
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued an another new tender for 5,000,000 Metric Tons of blended sub-bi ...
Tuesday, 24 October 17
CHINA'S INSATIABLE APPETITE FOR THIS ENERGY COMMODITY CONTINUES STRONG - GEORGE LAZARIDIS
Crude oil prices have been seeing some support emerge this past week as supply disruptions in Iraq and a drop in US drilling has helped bolster oil ...
Friday, 20 October 17
U.S COAL PRODUCTION FELL 1.45 PER CENT WEEK OVER WEEK - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 14.9 million short ton ...
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Showing 1906 to 1910 news of total 6871 |
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- Australian Commodity Traders Exchange
- Cigading International Bulk Terminal - Indonesia
- Independent Power Producers Association of India
- Vizag Seaport Private Limited - India
- Indian Energy Exchange, India
- MS Steel International - UAE
- Mercator Lines Limited - India
- Kapuas Tunggal Persada - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- Attock Cement Pakistan Limited
- Indian Oil Corporation Limited
- Agrawal Coal Company - India
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Holcim Trading Pte Ltd - Singapore
- IEA Clean Coal Centre - UK
- Asmin Koalindo Tuhup - Indonesia
- Cement Manufacturers Association - India
- Merrill Lynch Commodities Europe
- Sical Logistics Limited - India
- Madhucon Powers Ltd - India
- Siam City Cement - Thailand
- Meenaskhi Energy Private Limited - India
- Planning Commission, India
- Leighton Contractors Pty Ltd - Australia
- Sinarmas Energy and Mining - Indonesia
- CNBM International Corporation - China
- Miang Besar Coal Terminal - Indonesia
- Antam Resourcindo - Indonesia
- Metalloyd Limited - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
- Essar Steel Hazira Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Dalmia Cement Bharat India
- Wood Mackenzie - Singapore
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- Ind-Barath Power Infra Limited - India
- PTC India Limited - India
- Simpson Spence & Young - Indonesia
- Petron Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Indonesian Coal Mining Association
- Vijayanagar Sugar Pvt Ltd - India
- Singapore Mercantile Exchange
- Semirara Mining Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Coastal Gujarat Power Limited - India
- Salva Resources Pvt Ltd - India
- New Zealand Coal & Carbon
- The State Trading Corporation of India Ltd
- Sojitz Corporation - Japan
- Deloitte Consulting - India
- Coalindo Energy - Indonesia
- Electricity Authority, New Zealand
- Riau Bara Harum - Indonesia
- Bharathi Cement Corporation - India
- PNOC Exploration Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Ambuja Cements Ltd - India
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- Vedanta Resources Plc - India
- Electricity Generating Authority of Thailand
- Krishnapatnam Port Company Ltd. - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- Global Coal Blending Company Limited - Australia
- Star Paper Mills Limited - India
- Posco Energy - South Korea
- Ministry of Finance - Indonesia
- Meralco Power Generation, Philippines
- Kepco SPC Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Eastern Energy - Thailand
- Bangladesh Power Developement Board
- Thai Mozambique Logistica
- Bayan Resources Tbk. - Indonesia
- Minerals Council of Australia
- Ministry of Mines - Canada
- Straits Asia Resources Limited - Singapore
- Standard Chartered Bank - UAE
- Directorate Of Revenue Intelligence - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- McConnell Dowell - Australia
- IHS Mccloskey Coal Group - USA
- Chettinad Cement Corporation Ltd - India
- Rio Tinto Coal - Australia
- Central Electricity Authority - India
- Goldman Sachs - Singapore
- Orica Mining Services - Indonesia
- Jindal Steel & Power Ltd - India
- Aboitiz Power Corporation - Philippines
- Energy Link Ltd, New Zealand
- Bhushan Steel Limited - India
- Mercuria Energy - Indonesia
- GVK Power & Infra Limited - India
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Oldendorff Carriers - Singapore
- Grasim Industreis Ltd - India
- Bukit Baiduri Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Tamil Nadu electricity Board
- Toyota Tsusho Corporation, Japan
- Global Business Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Jorong Barutama Greston.PT - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Energy Development Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Carbofer General Trading SA - India
- ICICI Bank Limited - India
- PowerSource Philippines DevCo
- Heidelberg Cement - Germany
- SMG Consultants - Indonesia
- SN Aboitiz Power Inc, Philippines
- Tata Chemicals Ltd - India
- Anglo American - United Kingdom
- Economic Council, Georgia
- Commonwealth Bank - Australia
- Renaissance Capital - South Africa
- Medco Energi Mining Internasional
- Iligan Light & Power Inc, Philippines
- White Energy Company Limited
- Interocean Group of Companies - India
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- Indogreen Group - Indonesia
- India Bulls Power Limited - India
- Kobexindo Tractors - Indoneisa
- Banpu Public Company Limited - Thailand
- The Treasury - Australian Government
- The University of Queensland
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GMR Energy Limited - India
- Manunggal Multi Energi - Indonesia
- Eastern Coal Council - USA
- Africa Commodities Group - South Africa
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- Marubeni Corporation - India
- Altura Mining Limited, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Port Waratah Coal Services - Australia
- Chamber of Mines of South Africa
- Borneo Indobara - Indonesia
- Thiess Contractors Indonesia
- Gujarat Electricity Regulatory Commission - India
- Pendopo Energi Batubara - Indonesia
- Latin American Coal - Colombia
- Kalimantan Lumbung Energi - Indonesia
- TeaM Sual Corporation - Philippines
- Aditya Birla Group - India
- Coal and Oil Company - UAE
- Globalindo Alam Lestari - Indonesia
- SMC Global Power, Philippines
- Intertek Mineral Services - Indonesia
- Makarim & Taira - Indonesia
- Indika Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Binh Thuan Hamico - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Savvy Resources Ltd - HongKong
- Videocon Industries ltd - India
- Karaikal Port Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Central Java Power - Indonesia
- Parliament of New Zealand
- Lanco Infratech Ltd - India
- Georgia Ports Authority, United States
- International Coal Ventures Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Price Waterhouse Coopers - Russia
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Trasteel International SA, Italy
- Australian Coal Association
- Sree Jayajothi Cements Limited - India
- OPG Power Generation Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- GAC Shipping (India) Pvt Ltd
- Therma Luzon, Inc, Philippines
- Jaiprakash Power Ventures ltd
- Siam City Cement PLC, Thailand
- Baramulti Group, Indonesia
- San Jose City I Power Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- London Commodity Brokers - England
- CIMB Investment Bank - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Kideco Jaya Agung - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- Mintek Dendrill Indonesia
- Bhatia International Limited - India
- Kumho Petrochemical, South Korea
- Sakthi Sugars Limited - India
- Power Finance Corporation Ltd., India
- Ministry of Transport, Egypt
- Indo Tambangraya Megah - Indonesia
- Maheswari Brothers Coal Limited - India
- Malabar Cements Ltd - India
- Wilmar Investment Holdings
- Mjunction Services Limited - India
- Xindia Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining and Power Corporation, Philippines
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