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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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Tuesday, 17 October 17
SULPHUR 2020: COMING, READY OR NOT - ALIBRA SHIPPING
Some 70% of shipping companies surveyed say they do not believe the industry is ready for IMO’s 2020 deadline, when a global limit of 0.5% su ...
Tuesday, 17 October 17
U.S RECORD EXPORTS OIL TO EAST HAS HELPED THE TANKER TRADE - GEORGE LAZARIDIS
There was a flood of fresh news this week which clouded the overall prospects of the crude oil market. Just one week prior Saudi Arabia and Russia, ...
Monday, 16 October 17
INDONESIA TO INDIA COAL FREIGHT RATES STAY FIRM
COALspot.com: The daily average earnings for Supramax, for the route Indonesia to India passing through Singapore has stayed firm, week over week, ...
Friday, 13 October 17
INDIKA ENERGY SIGNS SHARE PURCHASE AGREEMENTS FOR AN ADDITIONAL 45% STAKE IN KIDECO
PT Indika Energy Tbk. and its wholly-owned subsidiary PT Indika Inti Corpindo (collectively, “Indika Energy”) has entered into separate ...
Friday, 13 October 17
THE SHORT-TERM OUTLOOK FOR THE PANAMAX MARKET REMAIN POSITIVE - FEARNLEYS
Supramax
The market has picked up strongly since last week with the Chinese holidays. In the Pacific rates are increasing with some strong number ...
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Showing 1911 to 1915 news of total 6871 |
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- Lanco Infratech Ltd - India
- White Energy Company Limited
- GN Power Mariveles Coal Plant, Philippines
- Directorate Of Revenue Intelligence - India
- Cement Manufacturers Association - India
- Meralco Power Generation, Philippines
- Antam Resourcindo - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- Gujarat Sidhee Cement - India
- Aboitiz Power Corporation - Philippines
- Sical Logistics Limited - India
- GAC Shipping (India) Pvt Ltd
- Vizag Seaport Private Limited - India
- Trasteel International SA, Italy
- Gujarat Mineral Development Corp Ltd - India
- Edison Trading Spa - Italy
- Sinarmas Energy and Mining - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Wood Mackenzie - Singapore
- Carbofer General Trading SA - India
- The University of Queensland
- Heidelberg Cement - Germany
- IEA Clean Coal Centre - UK
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Xindia Steels Limited - India
- Port Waratah Coal Services - Australia
- GVK Power & Infra Limited - India
- Malabar Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Mercuria Energy - Indonesia
- Rio Tinto Coal - Australia
- GMR Energy Limited - India
- Ambuja Cements Ltd - India
- Bharathi Cement Corporation - India
- Bangladesh Power Developement Board
- Mjunction Services Limited - India
- Dalmia Cement Bharat India
- Kartika Selabumi Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Interocean Group of Companies - India
- Jorong Barutama Greston.PT - Indonesia
- Commonwealth Bank - Australia
- Aditya Birla Group - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Alfred C Toepfer International GmbH - Germany
- Sarangani Energy Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Coal and Oil Company - UAE
- Eastern Energy - Thailand
- PowerSource Philippines DevCo
- Riau Bara Harum - Indonesia
- Sindya Power Generating Company Private Ltd
- Bayan Resources Tbk. - Indonesia
- Jindal Steel & Power Ltd - India
- Timah Investasi Mineral - Indoneisa
- Ministry of Mines - Canada
- PTC India Limited - India
- Australian Coal Association
- Globalindo Alam Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- New Zealand Coal & Carbon
- Rashtriya Ispat Nigam Limited - India
- TeaM Sual Corporation - Philippines
- The State Trading Corporation of India Ltd
- Altura Mining Limited, Indonesia
- Larsen & Toubro Limited - India
- Eastern Coal Council - USA
- Kaltim Prima Coal - Indonesia
- Therma Luzon, Inc, Philippines
- The Treasury - Australian Government
- PNOC Exploration Corporation - Philippines
- Renaissance Capital - South Africa
- MS Steel International - UAE
- Vijayanagar Sugar Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Directorate General of MIneral and Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Attock Cement Pakistan Limited
- Salva Resources Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Latin American Coal - Colombia
- Indika Energy - Indonesia
- Indian Energy Exchange, India
- Toyota Tsusho Corporation, Japan
- Tata Chemicals Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Africa Commodities Group - South Africa
- Georgia Ports Authority, United States
- Gujarat Electricity Regulatory Commission - India
- Kumho Petrochemical, South Korea
- Indo Tambangraya Megah - Indonesia
- Indonesian Coal Mining Association
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Electricity Authority, New Zealand
- Borneo Indobara - Indonesia
- Agrawal Coal Company - India
- Economic Council, Georgia
- Vedanta Resources Plc - India
- Goldman Sachs - Singapore
- Ceylon Electricity Board - Sri Lanka
- Central Java Power - Indonesia
- Banpu Public Company Limited - Thailand
- Price Waterhouse Coopers - Russia
- Formosa Plastics Group - Taiwan
- Bhoruka Overseas - Indonesia
- Kepco SPC Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Tamil Nadu electricity Board
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Mercator Lines Limited - India
- Baramulti Group, Indonesia
- Barasentosa Lestari - Indonesia
- Essar Steel Hazira Ltd - India
- Singapore Mercantile Exchange
- Indogreen Group - Indonesia
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Parry Sugars Refinery, India
- Global Business Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Billiton Holdings Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coastal Gujarat Power Limited - India
- Semirara Mining Corp, Philippines
- SMC Global Power, Philippines
- Parliament of New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bukit Baiduri Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- LBH Netherlands Bv - Netherlands
- Global Coal Blending Company Limited - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Thiess Contractors Indonesia
- SMG Consultants - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Oil Corporation Limited
- Bhushan Steel Limited - India
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- Energy Link Ltd, New Zealand
- ICICI Bank Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Jaiprakash Power Ventures ltd
- VISA Power Limited - India
- Sakthi Sugars Limited - India
- Standard Chartered Bank - UAE
- AsiaOL BioFuels Corp., Philippines
- Energy Development Corp, Philippines
- Planning Commission, India
- Iligan Light & Power Inc, Philippines
- CIMB Investment Bank - Malaysia
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- Maheswari Brothers Coal Limited - India
- Pendopo Energi Batubara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Star Paper Mills Limited - India
- Bulk Trading Sa - Switzerland
- Chettinad Cement Corporation Ltd - India
- Straits Asia Resources Limited - Singapore
- Anglo American - United Kingdom
- Coalindo Energy - Indonesia
- Oldendorff Carriers - Singapore
- Krishnapatnam Port Company Ltd. - India
- Central Electricity Authority - India
- Pipit Mutiara Jaya. PT, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- Videocon Industries ltd - India
- Cigading International Bulk Terminal - Indonesia
- ASAPP Information Group - India
- Siam City Cement - Thailand
- Ministry of Transport, Egypt
- Petrochimia International Co. Ltd.- Taiwan
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Kideco Jaya Agung - Indonesia
- Medco Energi Mining Internasional
- Offshore Bulk Terminal Pte Ltd, Singapore
- OPG Power Generation Pvt Ltd - India
- Petron Corporation, Philippines
- Makarim & Taira - Indonesia
- Chamber of Mines of South Africa
- Minerals Council of Australia
- Intertek Mineral Services - Indonesia
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Savvy Resources Ltd - HongKong
- Sojitz Corporation - Japan
- Binh Thuan Hamico - Vietnam
- Orica Mining Services - Indonesia
- Karaikal Port Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Thai Mozambique Logistica
- Australian Commodity Traders Exchange
- Merrill Lynch Commodities Europe
- London Commodity Brokers - England
- Independent Power Producers Association of India
- Asmin Koalindo Tuhup - Indonesia
- Global Green Power PLC Corporation, Philippines
- Power Finance Corporation Ltd., India
- CNBM International Corporation - China
- Electricity Generating Authority of Thailand
- Bhatia International Limited - India
- Meenaskhi Energy Private Limited - India
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