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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, 03 October 17
RIO TINTO COMPLETES FIRST FULLY AUTONOMOUS RAIL JOURNEY IN WESTERN AUSTRALIA
Rio Tinto has successfully completed the first fully autonomous rail journey at its iron ore operations in the Pilbara region of Western Australia ...
Tuesday, 03 October 17
ALLIED MARKET ANALYSIS
It seems as though the future of the oil trade was once again put into the spotlight, as the Asia Pacific Petroleum Conference took place last week ...
Friday, 29 September 17
U.S WEEKLY COAL OUTPUT DROPS FOR THE FIFTH WEEK IN A ROW, EIA DATA SHOWS
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 14.7 million short ...
Thursday, 28 September 17
SUPRAMAX: S.CHINA TRIP TO INDIA HAS BEEN FIXED AT AROUND US$ 11000 - FEARNLEYS
Supramax
The hot market seen the last weeks in the Pacific has softened as the Golden week holiday in China approaches and the October shipments ...
Thursday, 28 September 17
THE 'UNREASONABLE' COST OF CASUALTY REPAIRS: ASSOCIATION OF AVERAGE ADJUSTERS CHAIRMAN DETAILS CLAIMS DILEMMAS
KNOWLEDGE TO ELEVATE
The ‘unreasonable’ cost of casualty repairs: Association of Average Adjusters chairman details claims dilemma ...
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Showing 1926 to 1930 news of total 6871 |
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- Ambuja Cements Ltd - India
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Agrawal Coal Company - India
- Mintek Dendrill Indonesia
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- Indika Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Eastern Energy - Thailand
- Karaikal Port Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Malabar Cements Ltd - India
- Anglo American - United Kingdom
- Baramulti Group, Indonesia
- Bangladesh Power Developement Board
- Chamber of Mines of South Africa
- San Jose City I Power Corp, Philippines
- SMG Consultants - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Billiton Holdings Pty Ltd - Australia
- Latin American Coal - Colombia
- Ministry of Transport, Egypt
- Edison Trading Spa - Italy
- Karbindo Abesyapradhi - Indoneisa
- Star Paper Mills Limited - India
- Coal and Oil Company - UAE
- Siam City Cement - Thailand
- Carbofer General Trading SA - India
- The State Trading Corporation of India Ltd
- Bayan Resources Tbk. - Indonesia
- Independent Power Producers Association of India
- Pendopo Energi Batubara - Indonesia
- SMC Global Power, Philippines
- Krishnapatnam Port Company Ltd. - India
- Electricity Generating Authority of Thailand
- TeaM Sual Corporation - Philippines
- Vedanta Resources Plc - India
- Interocean Group of Companies - India
- Indogreen Group - Indonesia
- Kepco SPC Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Ceylon Electricity Board - Sri Lanka
- Cigading International Bulk Terminal - Indonesia
- Kideco Jaya Agung - Indonesia
- Australian Commodity Traders Exchange
- Thiess Contractors Indonesia
- Wood Mackenzie - Singapore
- Tata Chemicals Ltd - India
- Singapore Mercantile Exchange
- PNOC Exploration Corporation - Philippines
- Salva Resources Pvt Ltd - India
- ASAPP Information Group - India
- Ministry of Finance - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Australian Coal Association
- Directorate General of MIneral and Coal - Indonesia
- Larsen & Toubro Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Ind-Barath Power Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Meralco Power Generation, Philippines
- Sojitz Corporation - Japan
- The University of Queensland
- Sical Logistics Limited - India
- GMR Energy Limited - India
- Indonesian Coal Mining Association
- Power Finance Corporation Ltd., India
- OPG Power Generation Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Central Electricity Authority - India
- Pipit Mutiara Jaya. PT, Indonesia
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Wilmar Investment Holdings
- Miang Besar Coal Terminal - Indonesia
- Standard Chartered Bank - UAE
- Riau Bara Harum - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Simpson Spence & Young - Indonesia
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- Romanian Commodities Exchange
- Petron Corporation, Philippines
- Oldendorff Carriers - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Rio Tinto Coal - Australia
- India Bulls Power Limited - India
- Tamil Nadu electricity Board
- Bhatia International Limited - India
- Indian Energy Exchange, India
- Aditya Birla Group - India
- Georgia Ports Authority, United States
- Jindal Steel & Power Ltd - India
- Straits Asia Resources Limited - Singapore
- Makarim & Taira - Indonesia
- European Bulk Services B.V. - Netherlands
- Binh Thuan Hamico - Vietnam
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- Semirara Mining Corp, Philippines
- Xindia Steels Limited - India
- Coalindo Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Dalmia Cement Bharat India
- Orica Australia Pty. Ltd.
- Chettinad Cement Corporation Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- VISA Power Limited - India
- GVK Power & Infra Limited - India
- Parliament of New Zealand
- Savvy Resources Ltd - HongKong
- Barasentosa Lestari - Indonesia
- PTC India Limited - India
- Lanco Infratech Ltd - India
- Banpu Public Company Limited - Thailand
- Trasteel International SA, Italy
- Kumho Petrochemical, South Korea
- Mercator Lines Limited - India
- Samtan Co., Ltd - South Korea
- Global Coal Blending Company Limited - Australia
- MS Steel International - UAE
- GAC Shipping (India) Pvt Ltd
- Bharathi Cement Corporation - India
- Bhoruka Overseas - Indonesia
- Thai Mozambique Logistica
- White Energy Company Limited
- Kartika Selabumi Mining - Indonesia
- Attock Cement Pakistan Limited
- Jaiprakash Power Ventures ltd
- CIMB Investment Bank - Malaysia
- Essar Steel Hazira Ltd - India
- Marubeni Corporation - India
- Bukit Makmur.PT - Indonesia
- PowerSource Philippines DevCo
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Sindya Power Generating Company Private Ltd
- Africa Commodities Group - South Africa
- McConnell Dowell - Australia
- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
- Eastern Coal Council - USA
- Gujarat Sidhee Cement - India
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Parry Sugars Refinery, India
- Toyota Tsusho Corporation, Japan
- Maharashtra Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Mercuria Energy - Indonesia
- Economic Council, Georgia
- Posco Energy - South Korea
- CNBM International Corporation - China
- Global Business Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Mjunction Services Limited - India
- Medco Energi Mining Internasional
- Globalindo Alam Lestari - Indonesia
- Manunggal Multi Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Cement Manufacturers Association - India
- Indian Oil Corporation Limited
- Ministry of Mines - Canada
- Vizag Seaport Private Limited - India
- Neyveli Lignite Corporation Ltd, - India
- London Commodity Brokers - England
- New Zealand Coal & Carbon
- LBH Netherlands Bv - Netherlands
- South Luzon Thermal Energy Corporation
- Kobexindo Tractors - Indoneisa
- Central Java Power - Indonesia
- Port Waratah Coal Services - Australia
- Sarangani Energy Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Kaltim Prima Coal - Indonesia
- Deloitte Consulting - India
- Electricity Authority, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Formosa Plastics Group - Taiwan
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Sree Jayajothi Cements Limited - India
- Planning Commission, India
- IEA Clean Coal Centre - UK
- Renaissance Capital - South Africa
- Orica Mining Services - Indonesia
- Merrill Lynch Commodities Europe
- Intertek Mineral Services - Indonesia
- Minerals Council of Australia
- Commonwealth Bank - Australia
- Energy Link Ltd, New Zealand
- SN Aboitiz Power Inc, Philippines
- Grasim Industreis Ltd - India
- Timah Investasi Mineral - Indoneisa
- Goldman Sachs - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
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