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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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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% su ...
Tuesday, 17 October 17
U.S RECORD EXPORTS OIL TO EAST HAS HELPED THE TANKER TRADE - GEORGE LAZARIDIS
There was a flood of fresh news this week which clouded the overall prospects of the crude oil market. Just one week prior Saudi Arabia and Russia, ...
Monday, 16 October 17
INDONESIA TO INDIA COAL FREIGHT RATES STAY FIRM
COALspot.com: The daily average earnings for Supramax, for the route Indonesia to India passing through Singapore has stayed firm, week over week, ...
Friday, 13 October 17
INDIKA ENERGY SIGNS SHARE PURCHASE AGREEMENTS FOR AN ADDITIONAL 45% STAKE IN KIDECO
PT Indika Energy Tbk. and its wholly-owned subsidiary PT Indika Inti Corpindo (collectively, “Indika Energy”) has entered into separate ...
Friday, 13 October 17
THE SHORT-TERM OUTLOOK FOR THE PANAMAX MARKET REMAIN POSITIVE - FEARNLEYS
Supramax
The market has picked up strongly since last week with the Chinese holidays. In the Pacific rates are increasing with some strong number ...
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Showing 1911 to 1915 news of total 6871 |
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- Sinarmas Energy and Mining - Indonesia
- Borneo Indobara - Indonesia
- CNBM International Corporation - China
- Ministry of Finance - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- Central Electricity Authority - India
- Bukit Makmur.PT - Indonesia
- Vizag Seaport Private Limited - India
- Banpu Public Company Limited - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- TNB Fuel Sdn Bhd - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Parliament of New Zealand
- Posco Energy - South Korea
- Salva Resources Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- New Zealand Coal & Carbon
- Eastern Energy - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Commonwealth Bank - Australia
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Orica Mining Services - Indonesia
- Bhatia International Limited - India
- Orica Australia Pty. Ltd.
- Tamil Nadu electricity Board
- The University of Queensland
- Therma Luzon, Inc, Philippines
- White Energy Company Limited
- Port Waratah Coal Services - Australia
- The Treasury - Australian Government
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- Mintek Dendrill Indonesia
- Thai Mozambique Logistica
- Sindya Power Generating Company Private Ltd
- Coal and Oil Company - UAE
- PNOC Exploration Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Savvy Resources Ltd - HongKong
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- VISA Power Limited - India
- Agrawal Coal Company - India
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- McConnell Dowell - Australia
- Simpson Spence & Young - Indonesia
- Romanian Commodities Exchange
- AsiaOL BioFuels Corp., Philippines
- Wood Mackenzie - Singapore
- International Coal Ventures Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Krishnapatnam Port Company Ltd. - India
- Timah Investasi Mineral - Indoneisa
- Electricity Authority, New Zealand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Directorate Of Revenue Intelligence - India
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Mercator Lines Limited - India
- Kumho Petrochemical, South Korea
- Parry Sugars Refinery, India
- Price Waterhouse Coopers - Russia
- Uttam Galva Steels Limited - India
- Straits Asia Resources Limited - Singapore
- Latin American Coal - Colombia
- Australian Commodity Traders Exchange
- Carbofer General Trading SA - India
- Chettinad Cement Corporation Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Electricity Generating Authority of Thailand
- Miang Besar Coal Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Alfred C Toepfer International GmbH - Germany
- Thiess Contractors Indonesia
- MS Steel International - UAE
- Sarangani Energy Corporation, Philippines
- London Commodity Brokers - England
- Samtan Co., Ltd - South Korea
- Goldman Sachs - Singapore
- CIMB Investment Bank - Malaysia
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- Siam City Cement PLC, Thailand
- Ind-Barath Power Infra Limited - India
- Africa Commodities Group - South Africa
- Bharathi Cement Corporation - India
- Directorate General of MIneral and Coal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Kobexindo Tractors - Indoneisa
- Jaiprakash Power Ventures ltd
- Merrill Lynch Commodities Europe
- Bhoruka Overseas - Indonesia
- Iligan Light & Power Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Bulk Trading Sa - Switzerland
- PowerSource Philippines DevCo
- ASAPP Information Group - India
- Energy Link Ltd, New Zealand
- Deloitte Consulting - India
- Heidelberg Cement - Germany
- ICICI Bank Limited - India
- Rashtriya Ispat Nigam Limited - India
- Sakthi Sugars Limited - India
- Rio Tinto Coal - Australia
- Karbindo Abesyapradhi - Indoneisa
- Petron Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- GMR Energy Limited - India
- Barasentosa Lestari - Indonesia
- Power Finance Corporation Ltd., India
- Minerals Council of Australia
- India Bulls Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Economic Council, Georgia
- Marubeni Corporation - India
- Eastern Coal Council - USA
- Cement Manufacturers Association - India
- OPG Power Generation Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Baramulti Group, Indonesia
- Star Paper Mills Limited - India
- Intertek Mineral Services - Indonesia
- Australian Coal Association
- Globalindo Alam Lestari - Indonesia
- Indian Oil Corporation Limited
- Meenaskhi Energy Private Limited - India
- Mjunction Services Limited - India
- Grasim Industreis Ltd - India
- Binh Thuan Hamico - Vietnam
- Coastal Gujarat Power Limited - India
- Singapore Mercantile Exchange
- Neyveli Lignite Corporation Ltd, - India
- Kaltim Prima Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Global Coal Blending Company Limited - Australia
- Mercuria Energy - Indonesia
- SMC Global Power, Philippines
- IEA Clean Coal Centre - UK
- Sree Jayajothi Cements Limited - India
- Videocon Industries ltd - India
- Independent Power Producers Association of India
- Kepco SPC Power Corporation, Philippines
- Indika Energy - Indonesia
- Gujarat Sidhee Cement - India
- Global Business Power Corporation, Philippines
- Trasteel International SA, Italy
- Vedanta Resources Plc - India
- Indogreen Group - Indonesia
- Tata Chemicals Ltd - India
- SMG Consultants - Indonesia
- Leighton Contractors Pty Ltd - Australia
- LBH Netherlands Bv - Netherlands
- Indonesian Coal Mining Association
- Wilmar Investment Holdings
- SN Aboitiz Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- Ambuja Cements Ltd - India
- Coalindo Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Chamber of Mines of South Africa
- GAC Shipping (India) Pvt Ltd
- Planning Commission, India
- Ministry of Mines - Canada
- Edison Trading Spa - Italy
- Pendopo Energi Batubara - Indonesia
- Altura Mining Limited, Indonesia
- Sical Logistics Limited - India
- Bhushan Steel Limited - India
- South Luzon Thermal Energy Corporation
- Madhucon Powers Ltd - India
- Riau Bara Harum - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Dalmia Cement Bharat India
- Malabar Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Aboitiz Power Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Renaissance Capital - South Africa
- PTC India Limited - India
- Global Green Power PLC Corporation, Philippines
- Sojitz Corporation - Japan
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- Xindia Steels Limited - India
- Antam Resourcindo - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bangladesh Power Developement Board
- Central Java Power - Indonesia
- Metalloyd Limited - United Kingdom
- Siam City Cement - Thailand
- Georgia Ports Authority, United States
- Pipit Mutiara Jaya. PT, Indonesia
- Attock Cement Pakistan Limited
- Holcim Trading Pte Ltd - Singapore
- San Jose City I Power Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Larsen & Toubro Limited - India
- Maheswari Brothers Coal Limited - India
- Aditya Birla Group - India
- Interocean Group of Companies - India
- Kideco Jaya Agung - Indonesia
- Kartika Selabumi Mining - Indonesia
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