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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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Monday, 09 October 17
INDONESIAN COAL PRICE REFERENCE HITS NEW HIGH FOR 2017
COALspot.com: Indonesian coal benchmark price surges 2.13% in October month over month, the latest ministerial decree showed.
The benchmark pr ...
Monday, 09 October 17
INDIA'S COAL IMPORTS UP 10% IN SEPT AS POWER PLANTS FACE FUEL SHORTAGE - PTI
Coal imports rose by 9.5 per cent to 18.33 million tonnes (MT) in September, after having registered year-on-year decline for five months in a row, ...
Friday, 06 October 17
U.S. WEEKLY COAL OUTPUT HAS REBOUNDED AFTER DECLINING 5 WEEKS IN A ROW
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.3 million short tons ...
Wednesday, 04 October 17
SHIPPING MARKET INSIGHT - GEORGE ILIOPOULOS
During the past couple of months the dry bulk market has displayed particularly strong momentum and we have been witnessing steady appetite and act ...
Tuesday, 03 October 17
VIETNAM'S COAL-FIRED THERMAL POWER DEPENDENT ON CHINA - VIETNAMNET BRIDGE
A report from the Green Innovation and Development Centre (GreenID) showed that, as of the end of last year, of 27 coal-fired thermopower plants, 1 ...
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Showing 1921 to 1925 news of total 6871 |
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- Kartika Selabumi Mining - Indonesia
- Barasentosa Lestari - Indonesia
- Gujarat Sidhee Cement - India
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Cement Manufacturers Association - India
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- CNBM International Corporation - China
- Kumho Petrochemical, South Korea
- Kapuas Tunggal Persada - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- Vizag Seaport Private Limited - India
- Orica Australia Pty. Ltd.
- Bharathi Cement Corporation - India
- Iligan Light & Power Inc, Philippines
- Vedanta Resources Plc - India
- Kepco SPC Power Corporation, Philippines
- Independent Power Producers Association of India
- Intertek Mineral Services - Indonesia
- OPG Power Generation Pvt Ltd - India
- India Bulls Power Limited - India
- Jindal Steel & Power Ltd - India
- Semirara Mining Corp, Philippines
- Bulk Trading Sa - Switzerland
- Antam Resourcindo - Indonesia
- Orica Mining Services - Indonesia
- Power Finance Corporation Ltd., India
- Miang Besar Coal Terminal - Indonesia
- Interocean Group of Companies - India
- Bukit Baiduri Energy - Indonesia
- Marubeni Corporation - India
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Kaltim Prima Coal - Indonesia
- Essar Steel Hazira Ltd - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- San Jose City I Power Corp, Philippines
- Ministry of Finance - Indonesia
- Carbofer General Trading SA - India
- Manunggal Multi Energi - Indonesia
- The University of Queensland
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- MS Steel International - UAE
- Wood Mackenzie - Singapore
- Australian Coal Association
- Romanian Commodities Exchange
- Krishnapatnam Port Company Ltd. - India
- Wilmar Investment Holdings
- Ambuja Cements Ltd - India
- Indian Oil Corporation Limited
- Directorate Of Revenue Intelligence - India
- White Energy Company Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Attock Cement Pakistan Limited
- Economic Council, Georgia
- European Bulk Services B.V. - Netherlands
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Mercator Lines Limited - India
- LBH Netherlands Bv - Netherlands
- Electricity Generating Authority of Thailand
- Medco Energi Mining Internasional
- New Zealand Coal & Carbon
- Indo Tambangraya Megah - Indonesia
- Central Java Power - Indonesia
- Holcim Trading Pte Ltd - Singapore
- GVK Power & Infra Limited - India
- Coastal Gujarat Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Latin American Coal - Colombia
- Global Business Power Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Therma Luzon, Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- PowerSource Philippines DevCo
- Bhoruka Overseas - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Energy Link Ltd, New Zealand
- Malabar Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- ASAPP Information Group - India
- Petron Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Meralco Power Generation, Philippines
- Parliament of New Zealand
- Riau Bara Harum - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GMR Energy Limited - India
- Georgia Ports Authority, United States
- Commonwealth Bank - Australia
- Bhushan Steel Limited - India
- Rashtriya Ispat Nigam Limited - India
- Anglo American - United Kingdom
- Standard Chartered Bank - UAE
- Siam City Cement PLC, Thailand
- TeaM Sual Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Agrawal Coal Company - India
- Bhatia International Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Heidelberg Cement - Germany
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- Tata Chemicals Ltd - India
- Sical Logistics Limited - India
- SMG Consultants - Indonesia
- GAC Shipping (India) Pvt Ltd
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Samtan Co., Ltd - South Korea
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Mines - Canada
- Asmin Koalindo Tuhup - Indonesia
- Sarangani Energy Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Sojitz Corporation - Japan
- Meenaskhi Energy Private Limited - India
- Mjunction Services Limited - India
- Metalloyd Limited - United Kingdom
- Mercuria Energy - Indonesia
- Indogreen Group - Indonesia
- Indika Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Star Paper Mills Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Sree Jayajothi Cements Limited - India
- Chamber of Mines of South Africa
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- Makarim & Taira - Indonesia
- Singapore Mercantile Exchange
- Edison Trading Spa - Italy
- Karaikal Port Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Trasteel International SA, Italy
- Xindia Steels Limited - India
- Renaissance Capital - South Africa
- PNOC Exploration Corporation - Philippines
- Coal and Oil Company - UAE
- Bukit Makmur.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Altura Mining Limited, Indonesia
- Straits Asia Resources Limited - Singapore
- Coalindo Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Binh Thuan Hamico - Vietnam
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- The State Trading Corporation of India Ltd
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Energy Development Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Ind-Barath Power Infra Limited - India
- Africa Commodities Group - South Africa
- Aditya Birla Group - India
- ICICI Bank Limited - India
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Videocon Industries ltd - India
- Lanco Infratech Ltd - India
- Goldman Sachs - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Oldendorff Carriers - Singapore
- Global Green Power PLC Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Uttam Galva Steels Limited - India
- The Treasury - Australian Government
- Kideco Jaya Agung - Indonesia
- SN Aboitiz Power Inc, Philippines
- Central Electricity Authority - India
- Formosa Plastics Group - Taiwan
- Thai Mozambique Logistica
- Siam City Cement - Thailand
- Minerals Council of Australia
- Banpu Public Company Limited - Thailand
- Dalmia Cement Bharat India
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- Tamil Nadu electricity Board
- IEA Clean Coal Centre - UK
- Cigading International Bulk Terminal - Indonesia
- Posco Energy - South Korea
- Ministry of Transport, Egypt
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- Timah Investasi Mineral - Indoneisa
- Deloitte Consulting - India
- Bangladesh Power Developement Board
- Salva Resources Pvt Ltd - India
- Eastern Coal Council - USA
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- Kohat Cement Company Ltd. - Pakistan
- London Commodity Brokers - England
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PetroVietnam Power Coal Import and Supply Company
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