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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, 23 August 17
THE STRONG IRON ORE TRADE ROUTES SUPPORT CAPESIZE SEGMENT - INTERMODAL
The upward trend in the Capesize segment is definitely being supported by the strong momentum in the key iron ore trade routes. The price of high-q ...
Tuesday, 22 August 17
WHAT IS A RELEASE CALL?
KNOWLEDGE TO ELEVATE
Joining a mutual P&I Club means each Member shares in the fortunes of that Club and its membership. The continuity of ...
Tuesday, 22 August 17
THOSE DOG DAYS OF SUMMER STEEL PRODUCTION IN CHINA - COMMODORE
COALspot.com: One popular but inaccurate narrative that makes the rounds every June and July (and occurred again this year) is that China’s s ...
Monday, 21 August 17
BANPU REVEALS FIRST HALF 2017 WITH STRONG RESULTS; SUPPORTED BY HIGHER COAL PRICES
Banpu Reveals First Half 2017 with Strong Results from Higher Coal Prices Gearing Up to the Era of New Energy with Banpu Greener & Smarter Stra ...
Monday, 21 August 17
INDIA'S COAL IMPORTS DECLINE TO 192 MT IN FY17 - PTI
Import of coal saw a decline of 6.37 per cent to 191.95 million tonnes (MT) in 2016-17 on higher production by CIL that saw the country move to a r ...
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Showing 1961 to 1965 news of total 6871 |
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- GN Power Mariveles Coal Plant, Philippines
- Jindal Steel & Power Ltd - India
- Simpson Spence & Young - Indonesia
- Ind-Barath Power Infra Limited - India
- VISA Power Limited - India
- Cement Manufacturers Association - India
- Binh Thuan Hamico - Vietnam
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- Malabar Cements Ltd - India
- Marubeni Corporation - India
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Sojitz Corporation - Japan
- Orica Mining Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GMR Energy Limited - India
- TeaM Sual Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Independent Power Producers Association of India
- Indian Energy Exchange, India
- Neyveli Lignite Corporation Ltd, - India
- Rashtriya Ispat Nigam Limited - India
- Larsen & Toubro Limited - India
- Sindya Power Generating Company Private Ltd
- Kideco Jaya Agung - Indonesia
- Jaiprakash Power Ventures ltd
- Meralco Power Generation, Philippines
- Savvy Resources Ltd - HongKong
- Mercator Lines Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- The Treasury - Australian Government
- Indika Energy - Indonesia
- Standard Chartered Bank - UAE
- Altura Mining Limited, Indonesia
- Price Waterhouse Coopers - Russia
- GAC Shipping (India) Pvt Ltd
- Port Waratah Coal Services - Australia
- The University of Queensland
- Meenaskhi Energy Private Limited - India
- Australian Coal Association
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- CNBM International Corporation - China
- Leighton Contractors Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- Central Java Power - Indonesia
- Uttam Galva Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Mercuria Energy - Indonesia
- London Commodity Brokers - England
- Parliament of New Zealand
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Salva Resources Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- AsiaOL BioFuels Corp., Philippines
- Videocon Industries ltd - India
- Romanian Commodities Exchange
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Wilmar Investment Holdings
- Kaltim Prima Coal - Indonesia
- Vizag Seaport Private Limited - India
- Madhucon Powers Ltd - India
- LBH Netherlands Bv - Netherlands
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- Heidelberg Cement - Germany
- Krishnapatnam Port Company Ltd. - India
- Australian Commodity Traders Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Wood Mackenzie - Singapore
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- Dalmia Cement Bharat India
- Siam City Cement PLC, Thailand
- Ambuja Cements Ltd - India
- ICICI Bank Limited - India
- SMG Consultants - Indonesia
- Edison Trading Spa - Italy
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- Baramulti Group, Indonesia
- Eastern Energy - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Singapore Mercantile Exchange
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- IEA Clean Coal Centre - UK
- Sree Jayajothi Cements Limited - India
- Semirara Mining Corp, Philippines
- IHS Mccloskey Coal Group - USA
- CIMB Investment Bank - Malaysia
- Straits Asia Resources Limited - Singapore
- Economic Council, Georgia
- Bukit Baiduri Energy - Indonesia
- Electricity Generating Authority of Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Business Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Sarangani Energy Corporation, Philippines
- Indian Oil Corporation Limited
- SMC Global Power, Philippines
- Thiess Contractors Indonesia
- Kartika Selabumi Mining - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kapuas Tunggal Persada - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Renaissance Capital - South Africa
- Indonesian Coal Mining Association
- Miang Besar Coal Terminal - Indonesia
- Barasentosa Lestari - Indonesia
- Makarim & Taira - Indonesia
- European Bulk Services B.V. - Netherlands
- PNOC Exploration Corporation - Philippines
- Xindia Steels Limited - India
- Mjunction Services Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Star Paper Mills Limited - India
- Iligan Light & Power Inc, Philippines
- Kumho Petrochemical, South Korea
- PetroVietnam Power Coal Import and Supply Company
- PowerSource Philippines DevCo
- Karbindo Abesyapradhi - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Agrawal Coal Company - India
- Commonwealth Bank - Australia
- Globalindo Alam Lestari - Indonesia
- Global Green Power PLC Corporation, Philippines
- Therma Luzon, Inc, Philippines
- White Energy Company Limited
- Indogreen Group - Indonesia
- Aditya Birla Group - India
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- San Jose City I Power Corp, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- Orica Australia Pty. Ltd.
- Aboitiz Power Corporation - Philippines
- MS Steel International - UAE
- Thai Mozambique Logistica
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Bayan Resources Tbk. - Indonesia
- Samtan Co., Ltd - South Korea
- Pendopo Energi Batubara - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- Oldendorff Carriers - Singapore
- Bulk Trading Sa - Switzerland
- Chamber of Mines of South Africa
- Riau Bara Harum - Indonesia
- Toyota Tsusho Corporation, Japan
- Attock Cement Pakistan Limited
- Essar Steel Hazira Ltd - India
- Vedanta Resources Plc - India
- Formosa Plastics Group - Taiwan
- Latin American Coal - Colombia
- Minerals Council of Australia
- Timah Investasi Mineral - Indoneisa
- Petron Corporation, Philippines
- Anglo American - United Kingdom
- Grasim Industreis Ltd - India
- Siam City Cement - Thailand
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- Medco Energi Mining Internasional
- Global Coal Blending Company Limited - Australia
- Karaikal Port Pvt Ltd - India
- Borneo Indobara - Indonesia
- Coastal Gujarat Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Planning Commission, India
- Manunggal Multi Energi - Indonesia
- Merrill Lynch Commodities Europe
- Directorate General of MIneral and Coal - Indonesia
- ASAPP Information Group - India
- Kobexindo Tractors - Indoneisa
- Sical Logistics Limited - India
- Holcim Trading Pte Ltd - Singapore
- Africa Commodities Group - South Africa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chettinad Cement Corporation Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Eastern Coal Council - USA
- Gujarat Mineral Development Corp Ltd - India
- Bangladesh Power Developement Board
- Deloitte Consulting - India
- The State Trading Corporation of India Ltd
- Ministry of Finance - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Power Finance Corporation Ltd., India
- Intertek Mineral Services - Indonesia
- Bhushan Steel Limited - India
- McConnell Dowell - Australia
- Energy Development Corp, Philippines
- Bukit Makmur.PT - Indonesia
- Trasteel International SA, Italy
- Georgia Ports Authority, United States
- Coal and Oil Company - UAE
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