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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% sulphur will be imposed on marine fuel for vessels trading internationally. That was the headline finding of a new survey conducted by CE Delft on behalf of Exxonmobil.
The survey suggests that only 500 ships have been equipped with scrubbers. There has been something of a backlash against scrubber technology, most notably from Maersk and Klaveness, who have said they see the technology as being expensive and immature.
Lasse Kristoffersen, CEO at Torvald Klaveness, last year said scrubbers are a costly investment, costing between $2.0 and $4.0m, which can sometimes be greater than the value of the vessel itself.
Other respondents to the ExxonMobil survey said they were concerned that shipping companies would cheat and falsify the sulphur content of their marine fuel. Could this be a tacit admission that port states do not intend to or will not be able to enforce the 0.5% cap in their own waters?
Time is running out to solve these problems. A little over two years remains before the global cap is imposed and shipping companies have few options with which to comply with the new regulation.
Maersk has favoured using alternative fuels to installing scrubbers. It is likely that, rather than investing in abatement technologies, carriers will instead make an en-masse switch to 0.5% gasoil (or 0.5% fuel oil) come 2020. The International Energy Agency in 2015 estimated that around 2.2m bpd in maritime fuel demand would switch overnight to 0.5% gasoil. Separately, the International Bunker Industry Association (IBIA) has estimated the figure at 4.0m bpd.
This poses its own problems: what mix of fuels will be available in 2020 and at what cost for each type? Refiners have not been so forthcoming with information about what new capacity they are adding to deal with the expected rise in demand. If ship operators do switch to gasoil, they will have to compete with truck drivers and SUV owners to buy the fuel, which could drive up prices and possibly lead to shortages in supply.
Meanwhile, there will be a loophole for shipowners in 2020: vessels will be permitted to sail without compliant fuel if none is available, even if they do not have scrubbers installed.
On the other hand, perhaps we’re being too pessimistic. It remains possible that early adopters of scrubbers will have recouped all their outlay by 2020 if the retrofitted vessels have traded extensively in emission control areas before the cap enters into force. And if the price of distillate fuels rises significantly over the next 26 months, there could still be time for early adopters to make their money back.
Any additional costs that are incurred by using ultra-low-sulphur marine fuel (because it certainly won’t be any cheaper than HFO) will need to be shouldered ultimately by the shipper. If significant or volatile price differentials open up between gasoil and crude oil and fuel oil and crude oil, it will be all the more important to use hedging and bunker adjustment factors (BAF) wisely. This will mean that existing freight contracts (like COAs) and new long-term contracts that go beyond 2020 will need to accommodate this.
Although just over two years remain before the sulphur cap deadline, there are no easy answers as to how best to comply but shipping companies should start planning for tomorrow today.
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Tuesday, 07 November 17
MECHEL SIGNED LONG-TERM COAL SUPPLY CONTRACT WITH ITOCHU CORPORATION
Mechel PAO a leading Russian mining and metals company, reports signing a framework agreement with a major Japanese universal trading company Itoch ...
Tuesday, 07 November 17
DRY BULK SHIPPING: TAKE GOOD CARE OF THE RECOVERY SAYS PETER SAND
Demand:
Even without much support from Brazilian iron ore exports during August, capesize rates went from $10,000 to $17,000 per day. In Septembe ...
Tuesday, 07 November 17
COAL MARKETS WERE RELATIVELY BUOYANT - DANIEL HYNES
Coal markets were relatively buoyant. Metallurgical coal prices were supported by the stronger steel and iron ore prices, says Daniel Hynes, Senior ...
Tuesday, 07 November 17
PROSPERITY AND WINTER WARMTH REMAIN PARAMOUNT IN CHINA - JEFFREY LANDSBERG
Chinese officials announced recently that 580 gigawatts of coal-derived electricity generation capacity has completed ultra-low emissions reform as ...
Monday, 06 November 17
COAL SHORTAGE HURTS INDIA'S HINDALCO AND VEDANTA SAYS BUSINESS STANDARD
Aluminium smelter operations of Vedanta and Hindalco are at risk of turning unviable due to a coal crunch.
According to Business Standard an I ...
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Showing 1891 to 1895 news of total 6871 |
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- Bhoruka Overseas - Indonesia
- Therma Luzon, Inc, Philippines
- Coastal Gujarat Power Limited - India
- Global Green Power PLC Corporation, Philippines
- Mercuria Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Semirara Mining Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Trasteel International SA, Italy
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Simpson Spence & Young - Indonesia
- Gujarat Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Mjunction Services Limited - India
- White Energy Company Limited
- Standard Chartered Bank - UAE
- Kapuas Tunggal Persada - Indonesia
- Xindia Steels Limited - India
- Tata Chemicals Ltd - India
- Banpu Public Company Limited - Thailand
- Siam City Cement PLC, Thailand
- Kalimantan Lumbung Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Merrill Lynch Commodities Europe
- Sojitz Corporation - Japan
- Samtan Co., Ltd - South Korea
- Posco Energy - South Korea
- Price Waterhouse Coopers - Russia
- Indo Tambangraya Megah - Indonesia
- Singapore Mercantile Exchange
- Chamber of Mines of South Africa
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- SN Aboitiz Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Romanian Commodities Exchange
- Sinarmas Energy and Mining - Indonesia
- Riau Bara Harum - Indonesia
- LBH Netherlands Bv - Netherlands
- Bayan Resources Tbk. - Indonesia
- Renaissance Capital - South Africa
- GAC Shipping (India) Pvt Ltd
- Eastern Coal Council - USA
- VISA Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Central Java Power - Indonesia
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- Kideco Jaya Agung - Indonesia
- Global Business Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Indogreen Group - Indonesia
- Madhucon Powers Ltd - India
- Rio Tinto Coal - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Africa Commodities Group - South Africa
- Altura Mining Limited, Indonesia
- Grasim Industreis Ltd - India
- The State Trading Corporation of India Ltd
- Coalindo Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Mercator Lines Limited - India
- The Treasury - Australian Government
- Minerals Council of Australia
- Gujarat Mineral Development Corp Ltd - India
- Jindal Steel & Power Ltd - India
- Uttam Galva Steels Limited - India
- Bhushan Steel Limited - India
- South Luzon Thermal Energy Corporation
- Asmin Koalindo Tuhup - Indonesia
- Thai Mozambique Logistica
- Kohat Cement Company Ltd. - Pakistan
- Sakthi Sugars Limited - India
- Georgia Ports Authority, United States
- Ministry of Transport, Egypt
- Deloitte Consulting - India
- Mintek Dendrill Indonesia
- Electricity Generating Authority of Thailand
- Meenaskhi Energy Private Limited - India
- Commonwealth Bank - Australia
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- New Zealand Coal & Carbon
- Indonesian Coal Mining Association
- Salva Resources Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- San Jose City I Power Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Heidelberg Cement - Germany
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Energy - Thailand
- Borneo Indobara - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Makarim & Taira - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- TNB Fuel Sdn Bhd - Malaysia
- PowerSource Philippines DevCo
- Indian Oil Corporation Limited
- Semirara Mining and Power Corporation, Philippines
- Malabar Cements Ltd - India
- Planning Commission, India
- Metalloyd Limited - United Kingdom
- Bhatia International Limited - India
- Central Electricity Authority - India
- Bangladesh Power Developement Board
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Global Coal Blending Company Limited - Australia
- Anglo American - United Kingdom
- London Commodity Brokers - England
- Petron Corporation, Philippines
- GMR Energy Limited - India
- Independent Power Producers Association of India
- Parry Sugars Refinery, India
- Orica Mining Services - Indonesia
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Coal and Oil Company - UAE
- Leighton Contractors Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Iligan Light & Power Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Bukit Makmur.PT - Indonesia
- Economic Council, Georgia
- Port Waratah Coal Services - Australia
- Intertek Mineral Services - Indonesia
- Indika Energy - Indonesia
- Vizag Seaport Private Limited - India
- ASAPP Information Group - India
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Wilmar Investment Holdings
- Edison Trading Spa - Italy
- Binh Thuan Hamico - Vietnam
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- Meralco Power Generation, Philippines
- Gujarat Sidhee Cement - India
- Agrawal Coal Company - India
- Goldman Sachs - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- PTC India Limited - India
- ICICI Bank Limited - India
- Alfred C Toepfer International GmbH - Germany
- Jorong Barutama Greston.PT - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Ind-Barath Power Infra Limited - India
- Sical Logistics Limited - India
- Larsen & Toubro Limited - India
- Dalmia Cement Bharat India
- GVK Power & Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Videocon Industries ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- TeaM Sual Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- European Bulk Services B.V. - Netherlands
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- SMG Consultants - Indonesia
- Medco Energi Mining Internasional
- Baramulti Group, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Bulk Trading Sa - Switzerland
- Toyota Tsusho Corporation, Japan
- CIMB Investment Bank - Malaysia
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- PetroVietnam Power Coal Import and Supply Company
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SMC Global Power, Philippines
- Carbofer General Trading SA - India
- Aditya Birla Group - India
- Lanco Infratech Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- MS Steel International - UAE
- Star Paper Mills Limited - India
- Karaikal Port Pvt Ltd - India
- Australian Coal Association
- Formosa Plastics Group - Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Attock Cement Pakistan Limited
- Oldendorff Carriers - Singapore
- Siam City Cement - Thailand
- Globalindo Alam Lestari - Indonesia
- Vedanta Resources Plc - India
- Orica Australia Pty. Ltd.
- Essar Steel Hazira Ltd - India
- Pendopo Energi Batubara - Indonesia
- The University of Queensland
- Wood Mackenzie - Singapore
- AsiaOL BioFuels Corp., Philippines
- Marubeni Corporation - India
- Thiess Contractors Indonesia
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