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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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Friday, 13 October 17
U.S. COAL EXPORTS FOR THE FIRST SEVEN MONTHS OF 2017 TOTALED 51 MMST; UP 62% YOY, EIA DATA SHOWS
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.2 million shor ...
Thursday, 12 October 17
THERMAL COAL PRICES IN EUROPE AND ASIA PUSHING HIGHER - DANIEL HYNES
Coal markets took the lead from the oil market, with thermal coal prices in Europe and Asia pushing higher says Daniel Hynes,Senior Commodity Strat ...
Wednesday, 11 October 17
2020 DEBATE AT IBIA'S LISW EVENT: COMPLIANCE & ENFORCEMENT – IT'S COMPLICATED : IBIA
There is no doubt about the start date for the 0.50% marine fuel sulphur limit in MARPOL Annex VI, but questions remain around how it will be enfor ...
Wednesday, 11 October 17
SHIPPING MARKET INSIGHT - TIMOS PPADIMITRIOU
With the majority of second-hand tonnage transactions taking place in the dry bulk sector it’s easy to lose sight of what is happening over a ...
Tuesday, 10 October 17
DELIVERY OF CARGO WITHOUT ORIGINAL BILLS OF LADING - UK P&I CLUB
KNOWLEDGE TO ELEVATE
- It is common in a lot of trades, whether bulk or oil, to accept a Letter of Indemnity (“LOI”) for non-produ ...
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Showing 1916 to 1920 news of total 6871 |
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- Sinarmas Energy and Mining - Indonesia
- South Luzon Thermal Energy Corporation
- Bukit Asam (Persero) Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Merrill Lynch Commodities Europe
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bharathi Cement Corporation - India
- Coalindo Energy - Indonesia
- MS Steel International - UAE
- Global Business Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Uttam Galva Steels Limited - India
- Rio Tinto Coal - Australia
- Intertek Mineral Services - Indonesia
- Energy Development Corp, Philippines
- Bhoruka Overseas - Indonesia
- CIMB Investment Bank - Malaysia
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- Xindia Steels Limited - India
- Edison Trading Spa - Italy
- Pipit Mutiara Jaya. PT, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sakthi Sugars Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- Minerals Council of Australia
- Coastal Gujarat Power Limited - India
- TeaM Sual Corporation - Philippines
- Renaissance Capital - South Africa
- Ministry of Mines - Canada
- Manunggal Multi Energi - Indonesia
- Vedanta Resources Plc - India
- Mercator Lines Limited - India
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Kohat Cement Company Ltd. - Pakistan
- Bhatia International Limited - India
- Rashtriya Ispat Nigam Limited - India
- Semirara Mining and Power Corporation, Philippines
- Trasteel International SA, Italy
- Siam City Cement - Thailand
- Borneo Indobara - Indonesia
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Medco Energi Mining Internasional
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- India Bulls Power Limited - India
- PTC India Limited - India
- Directorate General of MIneral and Coal - Indonesia
- IEA Clean Coal Centre - UK
- Leighton Contractors Pty Ltd - Australia
- Carbofer General Trading SA - India
- GVK Power & Infra Limited - India
- Indika Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Star Paper Mills Limited - India
- Cement Manufacturers Association - India
- Aboitiz Power Corporation - Philippines
- Kumho Petrochemical, South Korea
- Mercuria Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Maheswari Brothers Coal Limited - India
- Dalmia Cement Bharat India
- Meenaskhi Energy Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Baramulti Group, Indonesia
- Orica Mining Services - Indonesia
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Posco Energy - South Korea
- Indo Tambangraya Megah - Indonesia
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement PLC, Thailand
- Tata Chemicals Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Thiess Contractors Indonesia
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- Sojitz Corporation - Japan
- Romanian Commodities Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Sarangani Energy Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Chamber of Mines of South Africa
- Simpson Spence & Young - Indonesia
- CNBM International Corporation - China
- Parry Sugars Refinery, India
- New Zealand Coal & Carbon
- Australian Commodity Traders Exchange
- Indian Oil Corporation Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Marubeni Corporation - India
- Antam Resourcindo - Indonesia
- Eastern Coal Council - USA
- Electricity Authority, New Zealand
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Oldendorff Carriers - Singapore
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Mineral Development Corp Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mjunction Services Limited - India
- Central Electricity Authority - India
- London Commodity Brokers - England
- Asmin Koalindo Tuhup - Indonesia
- Grasim Industreis Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Samtan Co., Ltd - South Korea
- Lanco Infratech Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Kaltim Prima Coal - Indonesia
- Independent Power Producers Association of India
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Africa Commodities Group - South Africa
- Attock Cement Pakistan Limited
- Petron Corporation, Philippines
- Indonesian Coal Mining Association
- Parliament of New Zealand
- Malabar Cements Ltd - India
- The Treasury - Australian Government
- Kobexindo Tractors - Indoneisa
- Meralco Power Generation, Philippines
- Kideco Jaya Agung - Indonesia
- Electricity Generating Authority of Thailand
- Australian Coal Association
- Ministry of Finance - Indonesia
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Altura Mining Limited, Indonesia
- Kartika Selabumi Mining - Indonesia
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Formosa Plastics Group - Taiwan
- VISA Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Eastern Energy - Thailand
- ASAPP Information Group - India
- SMC Global Power, Philippines
- Makarim & Taira - Indonesia
- Metalloyd Limited - United Kingdom
- Latin American Coal - Colombia
- Bhushan Steel Limited - India
- Global Coal Blending Company Limited - Australia
- SMG Consultants - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Agrawal Coal Company - India
- Jindal Steel & Power Ltd - India
- Barasentosa Lestari - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Port Waratah Coal Services - Australia
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Georgia Ports Authority, United States
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- Karaikal Port Pvt Ltd - India
- Tamil Nadu electricity Board
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- Salva Resources Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Banpu Public Company Limited - Thailand
- GMR Energy Limited - India
- Heidelberg Cement - Germany
- Sical Logistics Limited - India
- Planning Commission, India
- Wood Mackenzie - Singapore
- Ceylon Electricity Board - Sri Lanka
- White Energy Company Limited
- Videocon Industries ltd - India
- SN Aboitiz Power Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Energy Exchange, India
- Bukit Makmur.PT - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Madhucon Powers Ltd - India
- Wilmar Investment Holdings
- Ind-Barath Power Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- Mintek Dendrill Indonesia
- Riau Bara Harum - Indonesia
- Essar Steel Hazira Ltd - India
- Standard Chartered Bank - UAE
- Bulk Trading Sa - Switzerland
- Deloitte Consulting - India
- McConnell Dowell - Australia
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Gujarat Sidhee Cement - India
- Semirara Mining Corp, Philippines
- Vizag Seaport Private Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- The State Trading Corporation of India Ltd
- Commonwealth Bank - Australia
- OPG Power Generation Pvt Ltd - India
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