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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, 11 September 17
A PUNCHY WEEK FOR THE BIG SHIPS AS THE RATE FOR WEST AUSTRALIA TO CHINA HIT $8.00 THE FIRST TIME IN NEARLY THREE YEARS - BALTIC EXCHANGE
Capesize
A punchy week for the big ships as the rate for West Australia/China hit $8.00 the first time in nearly three years. A Jiangsu Steamship ...
Monday, 11 September 17
INDONESIAN ICPR SURGES HIGHER, POSTS BIGGEST MONTHLY RISE SINCE DECEMBER 2016, ESDM DATA SHOWS
COALspot.com: Indonesian coal benchmark price surges 9.60% in September, government data showed.
The benchmark price of Indonesian th ...
Monday, 11 September 17
KOMIPO INVITED BIDS FOR TOTAL 6.235 MMT OF 5700 AND 5100 NAR COAL FOR 2017 TO 2022 LOADING
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued an another new tender for total 1,590,000 Metric Tons of Bitumino ...
Monday, 11 September 17
THE FREIGHT MARKET ROSE WEEK OVER WEEK; BCI UP 22.22% & BPI UP 14.77%
COALspot.com: The freight market rose in all segments week over week. Mainly Cape and Panamax have supported to pushed up BDI this past week, BDI, ...
Friday, 08 September 17
MIXED SIGNALS ON REFINERY PREPARATIONS FOR 2020 FUEL CHANGES - IBIA
A recent consultancy survey has suggested that some 85% of refiners have not made plans for how to deal with the expected dramatic fall in g ...
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Showing 1946 to 1950 news of total 6871 |
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- Bhoruka Overseas - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Tamil Nadu electricity Board
- European Bulk Services B.V. - Netherlands
- Altura Mining Limited, Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Independent Power Producers Association of India
- PetroVietnam Power Coal Import and Supply Company
- ASAPP Information Group - India
- Star Paper Mills Limited - India
- Dalmia Cement Bharat India
- London Commodity Brokers - England
- Meenaskhi Energy Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Parliament of New Zealand
- Sakthi Sugars Limited - India
- OPG Power Generation Pvt Ltd - India
- Thiess Contractors Indonesia
- New Zealand Coal & Carbon
- Siam City Cement PLC, Thailand
- Posco Energy - South Korea
- Vizag Seaport Private Limited - India
- Orica Mining Services - Indonesia
- Romanian Commodities Exchange
- Bhatia International Limited - India
- Rio Tinto Coal - Australia
- Petron Corporation, Philippines
- Medco Energi Mining Internasional
- Cigading International Bulk Terminal - Indonesia
- Mjunction Services Limited - India
- GVK Power & Infra Limited - India
- Chettinad Cement Corporation Ltd - India
- Latin American Coal - Colombia
- Toyota Tsusho Corporation, Japan
- Energy Link Ltd, New Zealand
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Asmin Koalindo Tuhup - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Heidelberg Cement - Germany
- Sical Logistics Limited - India
- Economic Council, Georgia
- Borneo Indobara - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- CNBM International Corporation - China
- Orica Australia Pty. Ltd.
- Chamber of Mines of South Africa
- Holcim Trading Pte Ltd - Singapore
- TeaM Sual Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Mintek Dendrill Indonesia
- Parry Sugars Refinery, India
- Attock Cement Pakistan Limited
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Bayan Resources Tbk. - Indonesia
- Central Java Power - Indonesia
- Timah Investasi Mineral - Indoneisa
- Maheswari Brothers Coal Limited - India
- Manunggal Multi Energi - Indonesia
- Aditya Birla Group - India
- Xindia Steels Limited - India
- Indian Oil Corporation Limited
- Coastal Gujarat Power Limited - India
- Ministry of Finance - Indonesia
- Cement Manufacturers Association - India
- Pipit Mutiara Jaya. PT, Indonesia
- South Luzon Thermal Energy Corporation
- Kaltim Prima Coal - Indonesia
- Jindal Steel & Power Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Kobexindo Tractors - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Riau Bara Harum - Indonesia
- Globalindo Alam Lestari - Indonesia
- Ministry of Mines - Canada
- Eastern Coal Council - USA
- Singapore Mercantile Exchange
- Metalloyd Limited - United Kingdom
- Planning Commission, India
- Petrochimia International Co. Ltd.- Taiwan
- Lanco Infratech Ltd - India
- Barasentosa Lestari - Indonesia
- Madhucon Powers Ltd - India
- Thai Mozambique Logistica
- Billiton Holdings Pty Ltd - Australia
- Anglo American - United Kingdom
- Kideco Jaya Agung - Indonesia
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Goldman Sachs - Singapore
- Merrill Lynch Commodities Europe
- Minerals Council of Australia
- LBH Netherlands Bv - Netherlands
- Binh Thuan Hamico - Vietnam
- Essar Steel Hazira Ltd - India
- Karaikal Port Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- SMG Consultants - Indonesia
- Pendopo Energi Batubara - Indonesia
- Port Waratah Coal Services - Australia
- International Coal Ventures Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Maharashtra Electricity Regulatory Commission - India
- San Jose City I Power Corp, Philippines
- Wood Mackenzie - Singapore
- Vedanta Resources Plc - India
- Energy Development Corp, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- GN Power Mariveles Coal Plant, Philippines
- Rashtriya Ispat Nigam Limited - India
- White Energy Company Limited
- Miang Besar Coal Terminal - Indonesia
- Indonesian Coal Mining Association
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Uttam Galva Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- PTC India Limited - India
- MS Steel International - UAE
- Formosa Plastics Group - Taiwan
- Larsen & Toubro Limited - India
- Straits Asia Resources Limited - Singapore
- ICICI Bank Limited - India
- Makarim & Taira - Indonesia
- Renaissance Capital - South Africa
- Australian Coal Association
- Directorate Of Revenue Intelligence - India
- Directorate General of MIneral and Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Banpu Public Company Limited - Thailand
- GMR Energy Limited - India
- Coalindo Energy - Indonesia
- Bangladesh Power Developement Board
- Bukit Baiduri Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Agrawal Coal Company - India
- Bhushan Steel Limited - India
- Carbofer General Trading SA - India
- Indogreen Group - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Australian Commodity Traders Exchange
- Antam Resourcindo - Indonesia
- SMC Global Power, Philippines
- Iligan Light & Power Inc, Philippines
- Jaiprakash Power Ventures ltd
- Edison Trading Spa - Italy
- Kartika Selabumi Mining - Indonesia
- Bulk Trading Sa - Switzerland
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Africa Commodities Group - South Africa
- PowerSource Philippines DevCo
- SN Aboitiz Power Inc, Philippines
- Power Finance Corporation Ltd., India
- Interocean Group of Companies - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- AsiaOL BioFuels Corp., Philippines
- India Bulls Power Limited - India
- The University of Queensland
- Ceylon Electricity Board - Sri Lanka
- Samtan Co., Ltd - South Korea
- Siam City Cement - Thailand
- Eastern Energy - Thailand
- The State Trading Corporation of India Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Coal and Oil Company - UAE
- Kohat Cement Company Ltd. - Pakistan
- Electricity Generating Authority of Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Global Coal Blending Company Limited - Australia
- Global Business Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Simpson Spence & Young - Indonesia
- Malabar Cements Ltd - India
- Deloitte Consulting - India
- Meralco Power Generation, Philippines
- Global Green Power PLC Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Sojitz Corporation - Japan
- Trasteel International SA, Italy
- Alfred C Toepfer International GmbH - Germany
- Sree Jayajothi Cements Limited - India
- Videocon Industries ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Indian Energy Exchange, India
- Savvy Resources Ltd - HongKong
- Wilmar Investment Holdings
- Marubeni Corporation - India
- Kepco SPC Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Ministry of Transport, Egypt
- Electricity Authority, New Zealand
- Sinarmas Energy and Mining - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Bharathi Cement Corporation - India
- Baramulti Group, Indonesia
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Commonwealth Bank - Australia
- Mercator Lines Limited - India
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Ambuja Cements Ltd - India
- Indika Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GAC Shipping (India) Pvt Ltd
- McConnell Dowell - Australia
- Kumho Petrochemical, South Korea
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