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Monday, 08 April 19
SULPHUR 2020 - COUNTDOWN TO THE SWITCHOVER - LLOYD'S REGISTER
 Sulphur 2020 (MARPOL Annex VI Reg. 14.1.3) is still dominating headlines and as we draw closer to the 1 January 2020 deadline it’s clear that this is a big challenge for numerous players within the industry, from supplier to the end-user. At this point owners and operators should have chosen their compliance option. We’re now seeing major fuel suppliers announcing their availability of 0.50% compliant fuel. Last month, BP announced that they have successfully tested Low Sulphur Fuel Oil at sea and will be selling 0.50% before 2020. This came shortly after the International Energy Agency projected that almost half of the global fleet will use marine gas oil in 2020 and eventually, 40% will burn Very Low Sulphur Fuel (LSFO). We’ve also seen that compliant fuel is available in ports such as Rotterdam. Importantly, this gives shipowners and operators the ability to plan ahead – as they learn which suppliers have what fuel available and where – helping them get their fleets and crews ready for this regulation.
The biggest challenge
For shipowners and operators, the biggest challenge is to prepare their ships when changing over from High Sulphur Fuel Oil (HSFO) to Low Sulphur Fuel Oil (LSFO). They will need to work out how much investment is needed to prepare the ship’s fuel systems and tanks; this might involve cleaning tanks which takes time, effort and money as the ship will need to be off-hire. Owners and operators also have the option to leave their tanks and hope that this change of fuel will not damage them or affect operations. Alternatively, they can consider the implications of the diversity of fuels that might come with this regulation. For example, will this require segmentation? If so, does the owner or operator have spare tanks to segment the fuel?
Test, prepare and plan
Our Fuel Oil Bunker Analysis and Advisory Service (FOBAS) team have been analysing 0.50% fuels to set a baseline understanding of compatibility and from a technical perspective, we would recommend implementing a fuel segregation plan. Whether that’s considering loading a light product compared to a heavy one, and or making greater efforts to segregate and avoid comingling fuels – industry experts warn against mixing one bunker with another as there’s a high risk of destabilising the fuels and in most situations, crews can’t easily assess the degree of risk of this happening until the fuel is already onboard, so segregation of bunkers is important.
The next step is managing the diversity of the viscosities of the fuels and managing any incompatibility thus observed between the different bunkers onboard: if crews must mix, then working out the ratio’s involved and any potential resultant properties is key. These are all important considerations and decisions to be made now as part of the ship implementation plan, as recommended by the IMO, allowing owners and operators the time to test, prepare and plan.
Some crews have had limited or no experience of using LSFO, and therefore crews need to be prepared for this, particularly when it comes to fuel management on board. All ships should have a fuel management protocol onboard , which is likely to be a procedure covered in the company’s ship management system. However, shipowners and operators need to go beyond this and ensure their crew have a proactive mindset to comply with the Sulphur 2020 limit. This should address an additional fuel change plan, for which the ship implementation plan will include key preparatory milestones, so considering whether there is a need to update their fuel management strategies to include bunker segregation and fuel compatibility.
A word of caution
There is some speculation that because we’re going to have a diverse range of fuel blends there will be quality issues, owners and crew will need to make sure there are barriers in place to protect against contamination if it occurs. This might not necessarily happen because all residual fuels are for the most part blended and blending has been a common practice in the shipping industry for many decades, but it’s right to be cautious. Reputable suppliers should meet the standards set out in ISO-8217, the marine fuel standard that gives the criteria of the core parameters which must be met by any fuel if it’s to be used onboard a ship. We recommend purchasing against the latest revision of the international marine fuel standard ISO-8217:2017. With this, the supplier knows the parameters and targets set out in ISO-8217 and understands that there’s clauses in the standard that expects the supplier to have quality assurance within the supply chain and consequently their responsibilities to heed to that.
When it comes to Sulphur 2020, planning is critical. Approximately 50% of the world fleet have little or no experience operating in an Emission Control Area (ECA) and having to switch to working with low sulphur fuel nor have they experienced this type of change before, so awareness for crews and preparing fuel systems and tanks is fundamental to get this change safely and effectively implemented. Yes, there are risks and safety concerns, however the industry can tackle these with a sense of confidence if sufficient planning, testing and stakeholder engagement is implemented.
Source: Lloyd’s Register
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Wednesday, 10 April 19
KOSPO INVITED BIDS FOR 160K MT OF MIN. 3700 NCV COAL FOR JUNE LOADING
COALspot.com: South Korea state-owned utility Korea Southern Power Co. Ltd (KOSPO) issued a tender for 160,000 MT of min. 3,800 Kcal/kg ~max.4,100 ...
Wednesday, 10 April 19
CHINA'S GROWING THERMAL COAL SUPPLY TO PRESSURE EXPORTERS - FITCH RATINGS
Growing Chinese thermal coal supply is likely to lead to further tightening of import controls by the government, putting pressure on seaborne coal ...
Wednesday, 10 April 19
SHIPPING MARKET INSIGHT - INTERMODAL
The tragedy in Brazil’s Vale Brumadinho where a tailings dam collapsed in January ranks among the world’s worst mining disasters. It co ...
Monday, 08 April 19
5TH INDIA NUCLEAR NEW BUILD CONGRESS 2019
5th India Nuclear New Build Congress 2019
The congress in Mumbai aims to bring together representatives from governments, regulators ...
Monday, 08 April 19
THERMAL COAL PRICES FALL, INDIAN POWER PLANTS TO SEE LIMITED GAINS - BUSINESS STANDARD
Thermal coal prices are on a downward spiral globally. Australian coal prices have fallen nearly 20 per cent in the past week, and 40 per cent from ...
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- Rashtriya Ispat Nigam Limited - India
- Borneo Indobara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ambuja Cements Ltd - India
- McConnell Dowell - Australia
- SMC Global Power, Philippines
- Deloitte Consulting - India
- ICICI Bank Limited - India
- San Jose City I Power Corp, Philippines
- Minerals Council of Australia
- Price Waterhouse Coopers - Russia
- International Coal Ventures Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Goldman Sachs - Singapore
- Semirara Mining Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- Africa Commodities Group - South Africa
- Star Paper Mills Limited - India
- Gujarat Electricity Regulatory Commission - India
- Holcim Trading Pte Ltd - Singapore
- Metalloyd Limited - United Kingdom
- Simpson Spence & Young - Indonesia
- Central Java Power - Indonesia
- CIMB Investment Bank - Malaysia
- Altura Mining Limited, Indonesia
- Jindal Steel & Power Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Bukit Makmur.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- New Zealand Coal & Carbon
- Iligan Light & Power Inc, Philippines
- Uttam Galva Steels Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- SMG Consultants - Indonesia
- Madhucon Powers Ltd - India
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- Bhushan Steel Limited - India
- Kobexindo Tractors - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Trasteel International SA, Italy
- Attock Cement Pakistan Limited
- Dalmia Cement Bharat India
- Intertek Mineral Services - Indonesia
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Baramulti Group, Indonesia
- Sarangani Energy Corporation, Philippines
- Vizag Seaport Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Lanco Infratech Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Indogreen Group - Indonesia
- Independent Power Producers Association of India
- South Luzon Thermal Energy Corporation
- Jorong Barutama Greston.PT - Indonesia
- Vedanta Resources Plc - India
- Mercator Lines Limited - India
- Kideco Jaya Agung - Indonesia
- Power Finance Corporation Ltd., India
- Vijayanagar Sugar Pvt Ltd - India
- India Bulls Power Limited - India
- Heidelberg Cement - Germany
- IHS Mccloskey Coal Group - USA
- Global Coal Blending Company Limited - Australia
- Banpu Public Company Limited - Thailand
- Mjunction Services Limited - India
- Energy Link Ltd, New Zealand
- Bhoruka Overseas - Indonesia
- Toyota Tsusho Corporation, Japan
- Posco Energy - South Korea
- Renaissance Capital - South Africa
- Cement Manufacturers Association - India
- Bayan Resources Tbk. - Indonesia
- PowerSource Philippines DevCo
- Directorate Of Revenue Intelligence - India
- Coal and Oil Company - UAE
- Port Waratah Coal Services - Australia
- Timah Investasi Mineral - Indoneisa
- Kumho Petrochemical, South Korea
- Makarim & Taira - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- Electricity Authority, New Zealand
- Coalindo Energy - Indonesia
- MS Steel International - UAE
- European Bulk Services B.V. - Netherlands
- Straits Asia Resources Limited - Singapore
- Commonwealth Bank - Australia
- Sojitz Corporation - Japan
- Neyveli Lignite Corporation Ltd, - India
- Singapore Mercantile Exchange
- Ind-Barath Power Infra Limited - India
- Barasentosa Lestari - Indonesia
- Thai Mozambique Logistica
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Alfred C Toepfer International GmbH - Germany
- Wood Mackenzie - Singapore
- TeaM Sual Corporation - Philippines
- London Commodity Brokers - England
- GMR Energy Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Miang Besar Coal Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Tamil Nadu electricity Board
- Sree Jayajothi Cements Limited - India
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- CNBM International Corporation - China
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement PLC, Thailand
- Bharathi Cement Corporation - India
- PNOC Exploration Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Ministry of Mines - Canada
- The University of Queensland
- Gujarat Sidhee Cement - India
- Energy Development Corp, Philippines
- Samtan Co., Ltd - South Korea
- Riau Bara Harum - Indonesia
- Central Electricity Authority - India
- Semirara Mining and Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Ministry of Transport, Egypt
- Indonesian Coal Mining Association
- The Treasury - Australian Government
- Siam City Cement - Thailand
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- Chamber of Mines of South Africa
- Bukit Baiduri Energy - Indonesia
- Indian Energy Exchange, India
- Carbofer General Trading SA - India
- Coastal Gujarat Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Economic Council, Georgia
- Ceylon Electricity Board - Sri Lanka
- Globalindo Alam Lestari - Indonesia
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- The State Trading Corporation of India Ltd
- Salva Resources Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Standard Chartered Bank - UAE
- Parliament of New Zealand
- ASAPP Information Group - India
- Pendopo Energi Batubara - Indonesia
- Xindia Steels Limited - India
- Eastern Coal Council - USA
- Asmin Koalindo Tuhup - Indonesia
- Maheswari Brothers Coal Limited - India
- Indika Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- GVK Power & Infra Limited - India
- Essar Steel Hazira Ltd - India
- Global Green Power PLC Corporation, Philippines
- Mintek Dendrill Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Edison Trading Spa - Italy
- Larsen & Toubro Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Malabar Cements Ltd - India
- Mercuria Energy - Indonesia
- Interocean Group of Companies - India
- Eastern Energy - Thailand
- Anglo American - United Kingdom
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Sical Logistics Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Bhatia International Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- VISA Power Limited - India
- Binh Thuan Hamico - Vietnam
- Ministry of Finance - Indonesia
- Savvy Resources Ltd - HongKong
- Latin American Coal - Colombia
- Orica Mining Services - Indonesia
- Aditya Birla Group - India
- Therma Luzon, Inc, Philippines
- Agrawal Coal Company - India
- Parry Sugars Refinery, India
- Thiess Contractors Indonesia
- Bangladesh Power Developement Board
- Kalimantan Lumbung Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Indian Oil Corporation Limited
- Australian Coal Association
- Karaikal Port Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Pipit Mutiara Jaya. PT, Indonesia
- Planning Commission, India
- Videocon Industries ltd - India
- Australian Commodity Traders Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- LBH Netherlands Bv - Netherlands
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- Rio Tinto Coal - Australia
- Merrill Lynch Commodities Europe
- Sinarmas Energy and Mining - Indonesia
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
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