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Tuesday, 24 April 18
IMO AIMS TO HALVE GLOBAL SHIPPING EMISSIONS - BUT WHAT WILL IT COST? - WOOD MACKENZIE
Global bunker fuel costs could rise by up to US$60 billion annually from 2020, in a full compliance scenario, when the International Maritime Organization's (IMO) 0.5 wt% sulphur cap for bunker fuels kicks in.
Fuel oil, which is high in sulphur content, has traditionally been used by the shipping industry as bunker fuel. In 2017, global demand for high-sulphur fuel oil stood at over 70% of overall bunker fuels.
With the implementation of the IMO regulation in 2020, shippers will have to consider a switch to alternative fuels, such as Ultra Low Sulphur Fuel Oil (ULSFO) or marine gas oil (MGO), or install scrubbers, a system that removes sulphur from exhaust gas emitted by bunkers.
Installing scrubbers may be an economically attractive option. Although there is an initial investment, shippers can expect a rate of return of between 20% and 50% depending on investment cost, MGO-fuel oil spread and ships' fuel consumption. However, the penetration rate for scrubbers could be limited by a number of factors, including access to finance, scrubber manufacturing capacity and dry-dock space.
Demand from the bunker fuels market will total about 5.3 million b/d in 2020, according to Wood Mackenzie forecasts.
Based on pure ULSFO refinery streams, available ULSFO volumes in 2020 will total about 1.2 million b/d. This could be boosted by further blending ULSFO with vacuum gas oil (VGO) streams, but VGO is a valuable feedstock for the production of other lighter refinery products, and may not be readily available.
It is likely that MGO will help meet additional demand from the shipping sector. Wood Mackenzie estimates that this will see MGO demand rise by over 1 million b/d in 2020 in our base case outlook. Meeting this demand will require higher crude runs with residue upgrading units, particularly in the US and China, supporting an uplift in refining margins.
It also provides refiners, particularly in the US and China, the opportunity to capture the value of their ULSFO component streams and increase their share of the global bunker market.
Some refiners should see better profit margins as incremental demand for MGO rises, pushing up its price. Higher refining runs, required to meet additional MGO demand, could potentially push global gasoline market into surplus weakening gasoline prices. This could mean that the gasoline pain for some refiners could be more acute than the impact of weaker HSFO prices. Overall, we expect a material impact on refining economics post IMO and refiners must ensure they have a robust IMO strategy in place.
We also expect a shift in bunkering locations based on compliant fuels availability. Singapore, for example, could potentially lose some of its market share for bunker fuels to China as shippers look for alternative locations with a surplus of compliant fuels. China, with ample MGO supply, is well positioned to attract shippers.
New greenfield upgrading investments from refiners are unlikely to be purely driven by IMO regulation, and there is a need to look at longer-term rationale and strategic fit of these projects. Structural shifts in the fuel oil and gasoil markets may result in better economics, but that needs to be re-evaluated. For refiners choosing not to invest, the focus should be on infrastructure to capture the opportunity from their existing configuration and internal streams.
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Friday, 02 August 24
COAL MARKET DEVELOPMENTS: FALLING PRICES AMID RECORD-HIGH OUTPUT - WORLD BANK
Coal prices inched up in May (m/m) following an 8 percent decline in 2024Q1. The Australian and South African benchmarks have plummeted more ...
Friday, 26 July 24
FUELEU MARITME IS COMING. IS YOUR CHARTERPARTY READY? - GARD
With less than six months to implementation of FuelEU Maritime in EU and EEA trades, there has been little published advice regarding how to alloca ...
Thursday, 04 July 24
INDIA'S COAL PRODUCTION RISES 14% IN JUNE - PTI
The country’s coal production rose by 14.49% to 84.63 million tonne (MT) in June. The country’s coal output was 73.92 MT in June last f ...
Tuesday, 02 July 24
NTPC CAPTIVE COAL OUTPUT GROWS 15% IN Q1; DESPATCH RISES 17%
State-owned NTPC on Monday reported a 15 per cent year-on-year increase in the production of coal from captives mines to 9.862 metric million tonne ...
Friday, 28 June 24
KOSPO INVITED BIDS FOR 400,000 MT OF MINIMUM 4000 NCV COAL FOR FIVE YEARS
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for total 400,000 MT of Low Calorific Value Coal for 5 years starting from July 2024 until ...
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Showing 6 to 10 news of total 6871 |
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- Borneo Indobara - Indonesia
- Kartika Selabumi Mining - Indonesia
- PNOC Exploration Corporation - Philippines
- The Treasury - Australian Government
- Planning Commission, India
- Sinarmas Energy and Mining - Indonesia
- Africa Commodities Group - South Africa
- Therma Luzon, Inc, Philippines
- Bhoruka Overseas - Indonesia
- Indian Oil Corporation Limited
- Chamber of Mines of South Africa
- Videocon Industries ltd - India
- Bukit Baiduri Energy - Indonesia
- Marubeni Corporation - India
- Standard Chartered Bank - UAE
- Bukit Makmur.PT - Indonesia
- Central Java Power - Indonesia
- Karaikal Port Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Iligan Light & Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- Rio Tinto Coal - Australia
- Energy Development Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Port Waratah Coal Services - Australia
- GAC Shipping (India) Pvt Ltd
- New Zealand Coal & Carbon
- Central Electricity Authority - India
- Australian Commodity Traders Exchange
- Globalindo Alam Lestari - Indonesia
- Edison Trading Spa - Italy
- TNB Fuel Sdn Bhd - Malaysia
- Power Finance Corporation Ltd., India
- Vizag Seaport Private Limited - India
- Eastern Energy - Thailand
- Directorate General of MIneral and Coal - Indonesia
- GMR Energy Limited - India
- Timah Investasi Mineral - Indoneisa
- Altura Mining Limited, Indonesia
- Makarim & Taira - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Miang Besar Coal Terminal - Indonesia
- Antam Resourcindo - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Eastern Coal Council - USA
- IEA Clean Coal Centre - UK
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kepco SPC Power Corporation, Philippines
- Indonesian Coal Mining Association
- Singapore Mercantile Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vedanta Resources Plc - India
- Global Business Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Orica Australia Pty. Ltd.
- Romanian Commodities Exchange
- Orica Mining Services - Indonesia
- Lanco Infratech Ltd - India
- Ministry of Mines - Canada
- Electricity Generating Authority of Thailand
- Holcim Trading Pte Ltd - Singapore
- Cement Manufacturers Association - India
- Toyota Tsusho Corporation, Japan
- PTC India Limited - India
- Carbofer General Trading SA - India
- Karbindo Abesyapradhi - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- Wood Mackenzie - Singapore
- Kobexindo Tractors - Indoneisa
- Economic Council, Georgia
- Larsen & Toubro Limited - India
- Aditya Birla Group - India
- Bulk Trading Sa - Switzerland
- Maheswari Brothers Coal Limited - India
- Aboitiz Power Corporation - Philippines
- Petron Corporation, Philippines
- Bhatia International Limited - India
- Bhushan Steel Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Directorate Of Revenue Intelligence - India
- Independent Power Producers Association of India
- Baramulti Group, Indonesia
- South Luzon Thermal Energy Corporation
- Kohat Cement Company Ltd. - Pakistan
- Agrawal Coal Company - India
- SN Aboitiz Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Jindal Steel & Power Ltd - India
- Salva Resources Pvt Ltd - India
- Mercuria Energy - Indonesia
- Australian Coal Association
- Tata Chemicals Ltd - India
- Mjunction Services Limited - India
- Trasteel International SA, Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The University of Queensland
- Ceylon Electricity Board - Sri Lanka
- OPG Power Generation Pvt Ltd - India
- Anglo American - United Kingdom
- Sarangani Energy Corporation, Philippines
- Heidelberg Cement - Germany
- ASAPP Information Group - India
- Sakthi Sugars Limited - India
- Metalloyd Limited - United Kingdom
- Minerals Council of Australia
- Gujarat Sidhee Cement - India
- Energy Link Ltd, New Zealand
- Parry Sugars Refinery, India
- Banpu Public Company Limited - Thailand
- CIMB Investment Bank - Malaysia
- Coastal Gujarat Power Limited - India
- Electricity Authority, New Zealand
- PowerSource Philippines DevCo
- Ambuja Cements Ltd - India
- Price Waterhouse Coopers - Russia
- Thiess Contractors Indonesia
- Wilmar Investment Holdings
- Asmin Koalindo Tuhup - Indonesia
- Barasentosa Lestari - Indonesia
- SMG Consultants - Indonesia
- Coalindo Energy - Indonesia
- Sojitz Corporation - Japan
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Attock Cement Pakistan Limited
- Indian Energy Exchange, India
- Indika Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Leighton Contractors Pty Ltd - Australia
- Neyveli Lignite Corporation Ltd, - India
- San Jose City I Power Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Savvy Resources Ltd - HongKong
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Binh Thuan Hamico - Vietnam
- Pendopo Energi Batubara - Indonesia
- GVK Power & Infra Limited - India
- Siam City Cement PLC, Thailand
- Sree Jayajothi Cements Limited - India
- Oldendorff Carriers - Singapore
- Krishnapatnam Port Company Ltd. - India
- Petrochimia International Co. Ltd.- Taiwan
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- CNBM International Corporation - China
- Renaissance Capital - South Africa
- Mercator Lines Limited - India
- Commonwealth Bank - Australia
- VISA Power Limited - India
- IHS Mccloskey Coal Group - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Thai Mozambique Logistica
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- LBH Netherlands Bv - Netherlands
- Essar Steel Hazira Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Simpson Spence & Young - Indonesia
- International Coal Ventures Pvt Ltd - India
- Indogreen Group - Indonesia
- White Energy Company Limited
- Straits Asia Resources Limited - Singapore
- Kapuas Tunggal Persada - Indonesia
- Coal and Oil Company - UAE
- Billiton Holdings Pty Ltd - Australia
- London Commodity Brokers - England
- Posco Energy - South Korea
- SMC Global Power, Philippines
- McConnell Dowell - Australia
- Tamil Nadu electricity Board
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- Bangladesh Power Developement Board
- Jaiprakash Power Ventures ltd
- Star Paper Mills Limited - India
- Deloitte Consulting - India
- Xindia Steels Limited - India
- Malabar Cements Ltd - India
- The State Trading Corporation of India Ltd
- Bharathi Cement Corporation - India
- ICICI Bank Limited - India
- Parliament of New Zealand
- Merrill Lynch Commodities Europe
- Kaltim Prima Coal - Indonesia
- MS Steel International - UAE
- Manunggal Multi Energi - Indonesia
- European Bulk Services B.V. - Netherlands
- TeaM Sual Corporation - Philippines
- Siam City Cement - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Dalmia Cement Bharat India
- India Bulls Power Limited - India
- Meralco Power Generation, Philippines
- Meenaskhi Energy Private Limited - India
- Ministry of Finance - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Latin American Coal - Colombia
- Ministry of Transport, Egypt
- Rashtriya Ispat Nigam Limited - India
- Chettinad Cement Corporation Ltd - India
- Medco Energi Mining Internasional
- Bahari Cakrawala Sebuku - Indonesia
- Kumho Petrochemical, South Korea
- Uttam Galva Steels Limited - India
- Interocean Group of Companies - India
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