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Monday, 05 November 18
TIGHTER FUEL RULES COULD RAISE SHIPOWNERS' COSTS AND CAPEX - FITCH RATINGS
 More stringent fuel regulations regarding sulphur content could significantly increase global shipping companies’ operating costs and capex needs, Fitch Ratings says. This may negatively affect their credit quality unless they manage to pass these costs to customers. Many shipping companies have started implementing fuel surcharges to recover costs associated with the new sulphur cap regulation, but their ability to sustain these will depend on market fundamentals, which remain challenging.
Competitive dynamics may change in the longer term with companies that are less financially able to absorb additional costs, especially given higher oil prices, withdrawing from the market. Reduced competitive pressures could then support a better supply-demand balance and allow the remaining shipping companies to raise freight rates in a bid to recoup some of the extra costs. The change in shipping fuel consumption could also affect refineries.
International Maritime Organization rules requiring ships to use fuel with sulphur content no higher than 0.5% (compared with 3.5% currently) come into effect on 1 January 2020. This means that shipping companies need to switch to higher-quality and more expensive marine fuel, use special equipment (“scrubbers”) to reduce sulphur emissions or switch to alternative fuels, such as liquefied natural gas (LNG). The new regulation will apply globally. Sulphur Emission Control Areas were established in a limited number of sea areas in 2005 and the sulphur content limit for fuel in those areas was tightened to 0.1% in 2015.
The global shipping industry fuel cost bill could increase by up to USD60 billion a year as a result of the new rules from 2020 for a total merchant fleet of 60,000 vessels, according to Wood Mackenzie. According to Maersk Line, its additional fuel costs would be over USD2 billion with a cost for the container shipping industry as a whole of up to USD15 billion, based on the difference in price of fuel with 3.5% and 0.5% sulphur content.
Scrubbers could be a viable alternative for some companies, but require several million dollars in upfront investments for each ship. Furthermore, scrubbers’ manufacturing and installing capacity is limited to fitting only about 2,000 scrubbers by 2020, according to Norwegian bank SEB. The LNG option will also require investments to retrofit ship engines and capacity to carry high-volume LNG tanks. In addition, LNG refuelling infrastructure may not be readily available globally.
The impact of the new regulation is unlikely to be uniform across segments. Ship owners that lease out ships with fuel costs borne by the charterer will be significantly less affected than operators that cover the fuel bill themselves if fuel surcharges related to the sulphur cap are not sustained.
If a significant proportion of shipping companies opt for higher-quality, low-sulphur fuel to comply with the regulations, the balance in the oil products market, and therefore refineries, may be affected. The 4 million barrel a day marine fuel market has been absorbing residue from the refining process, so there may be a need for refineries to adjust processes if demand for heavy fuel drops.
Demand for higher-quality fuel could lead to higher prices and widen pricing differentials between low- and high-sulphur products. Refineries with a higher share of middle distillates in their output, which are required to produce low-sulphur marine fuel, will benefit from the change. Low-complexity refineries will be hit and may need to invest in upgrades to shift their output towards middle distillates.
Source: Fitch Ratings
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Friday, 02 November 18
CHINA: COAL CONSUMPTION POSTS STRONG GROWTH ON BACK OF POWER GENERATION DEMAND - CHINA DAILY
China’s energy consumption experienced continuous rebound during the first three quarters in 2018, National Energy Administration announced o ...
Thursday, 01 November 18
IMO 2020 - EXPLORING THE OPTION OF SOX SCRUBBERS - SIDDHARTH MAHAJAN, GARD
KNOWLEDGE TO ELEVATE
There are four possible methods of compliance:
1.use VLSFO (very low Sulphur oil) or blends;
2,use dis ...
Wednesday, 31 October 18
INDIA: COAL IMPORTS SURGE ON DOMESTIC SHORT SUPPLY - HINDU
Shortage of thermal coal supply in India has pushed imports up to 85 million tonnes (mt) in the first half of the current fiscal compared to 75 mt ...
Wednesday, 31 October 18
SHIPPING MARKET INSIGHT - APOSTOLOS ROMPOPOULOS
Since the IMO’s 2020 global cap on sulphur in marine fuels is coming into force, ship-owners have to decide whether they will operate using e ...
Monday, 29 October 18
IMPLEMENTATION OF SULPHUR 2020 LIMIT - CARRIAGE BAN ADOPTED - IMO
An amendment to support consistent implementation of the forthcoming 0.50% limit on sulphur in ships fuel oil was adopted by the International Mari ...
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Showing 1571 to 1575 news of total 6871 |
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- Romanian Commodities Exchange
- Sree Jayajothi Cements Limited - India
- Chettinad Cement Corporation Ltd - India
- Price Waterhouse Coopers - Russia
- Cement Manufacturers Association - India
- GAC Shipping (India) Pvt Ltd
- Eastern Energy - Thailand
- Indika Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Indogreen Group - Indonesia
- ICICI Bank Limited - India
- Timah Investasi Mineral - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Australian Coal Association
- Bulk Trading Sa - Switzerland
- Bukit Makmur.PT - Indonesia
- Indonesian Coal Mining Association
- Aboitiz Power Corporation - Philippines
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- Anglo American - United Kingdom
- Gujarat Sidhee Cement - India
- Larsen & Toubro Limited - India
- Rio Tinto Coal - Australia
- Bayan Resources Tbk. - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Maheswari Brothers Coal Limited - India
- AsiaOL BioFuels Corp., Philippines
- Interocean Group of Companies - India
- Central Java Power - Indonesia
- Singapore Mercantile Exchange
- MS Steel International - UAE
- Alfred C Toepfer International GmbH - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kideco Jaya Agung - Indonesia
- Siam City Cement PLC, Thailand
- Wilmar Investment Holdings
- Cigading International Bulk Terminal - Indonesia
- Australian Commodity Traders Exchange
- Lanco Infratech Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Port Waratah Coal Services - Australia
- Goldman Sachs - Singapore
- Chamber of Mines of South Africa
- European Bulk Services B.V. - Netherlands
- Coal and Oil Company - UAE
- Bhatia International Limited - India
- Eastern Coal Council - USA
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- Orica Mining Services - Indonesia
- Petron Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Generating Authority of Thailand
- GVK Power & Infra Limited - India
- Barasentosa Lestari - Indonesia
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- Mjunction Services Limited - India
- Mercator Lines Limited - India
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- Malabar Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- SMG Consultants - Indonesia
- Tata Chemicals Ltd - India
- PNOC Exploration Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Directorate General of MIneral and Coal - Indonesia
- Electricity Authority, New Zealand
- Makarim & Taira - Indonesia
- Marubeni Corporation - India
- Energy Link Ltd, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Globalindo Alam Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Global Coal Blending Company Limited - Australia
- Kumho Petrochemical, South Korea
- Therma Luzon, Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Carbofer General Trading SA - India
- Coastal Gujarat Power Limited - India
- Parry Sugars Refinery, India
- Economic Council, Georgia
- Standard Chartered Bank - UAE
- Petrochimia International Co. Ltd.- Taiwan
- Baramulti Group, Indonesia
- Savvy Resources Ltd - HongKong
- Kalimantan Lumbung Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Commonwealth Bank - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Georgia Ports Authority, United States
- Indo Tambangraya Megah - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Sakthi Sugars Limited - India
- Sojitz Corporation - Japan
- Kohat Cement Company Ltd. - Pakistan
- White Energy Company Limited
- The State Trading Corporation of India Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ambuja Cements Ltd - India
- Riau Bara Harum - Indonesia
- TeaM Sual Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Heidelberg Cement - Germany
- Attock Cement Pakistan Limited
- Central Electricity Authority - India
- San Jose City I Power Corp, Philippines
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Parliament of New Zealand
- IHS Mccloskey Coal Group - USA
- Bangladesh Power Developement Board
- Semirara Mining and Power Corporation, Philippines
- SMC Global Power, Philippines
- Edison Trading Spa - Italy
- PowerSource Philippines DevCo
- Oldendorff Carriers - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- CNBM International Corporation - China
- Minerals Council of Australia
- Kartika Selabumi Mining - Indonesia
- Indian Oil Corporation Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vedanta Resources Plc - India
- Manunggal Multi Energi - Indonesia
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Salva Resources Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Power Finance Corporation Ltd., India
- Medco Energi Mining Internasional
- Antam Resourcindo - Indonesia
- Kobexindo Tractors - Indoneisa
- Mercuria Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Energy Development Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Global Business Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Karaikal Port Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Dalmia Cement Bharat India
- Independent Power Producers Association of India
- Bukit Baiduri Energy - Indonesia
- Simpson Spence & Young - Indonesia
- IEA Clean Coal Centre - UK
- Jaiprakash Power Ventures ltd
- OPG Power Generation Pvt Ltd - India
- Ministry of Mines - Canada
- Trasteel International SA, Italy
- Borneo Indobara - Indonesia
- Coalindo Energy - Indonesia
- Sical Logistics Limited - India
- Star Paper Mills Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Sarangani Energy Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Binh Thuan Hamico - Vietnam
- Metalloyd Limited - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Bharathi Cement Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Finance - Indonesia
- Deloitte Consulting - India
- Asmin Koalindo Tuhup - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Renaissance Capital - South Africa
- ASAPP Information Group - India
- Toyota Tsusho Corporation, Japan
- Agrawal Coal Company - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Vizag Seaport Private Limited - India
- CIMB Investment Bank - Malaysia
- New Zealand Coal & Carbon
- Bhushan Steel Limited - India
- Posco Energy - South Korea
- GMR Energy Limited - India
- London Commodity Brokers - England
- GN Power Mariveles Coal Plant, Philippines
- Thiess Contractors Indonesia
- Orica Australia Pty. Ltd.
- Global Green Power PLC Corporation, Philippines
- Altura Mining Limited, Indonesia
- Bhoruka Overseas - Indonesia
- Semirara Mining Corp, Philippines
- Videocon Industries ltd - India
- Planning Commission, India
- South Luzon Thermal Energy Corporation
- VISA Power Limited - India
- Africa Commodities Group - South Africa
- Aditya Birla Group - India
- Intertek Mineral Services - Indonesia
- Xindia Steels Limited - India
- The University of Queensland
- Essar Steel Hazira Ltd - India
- Siam City Cement - Thailand
- The Treasury - Australian Government
- Uttam Galva Steels Limited - India
- Tamil Nadu electricity Board
- LBH Netherlands Bv - Netherlands
- McConnell Dowell - Australia
- Billiton Holdings Pty Ltd - Australia
- Latin American Coal - Colombia
- India Bulls Power Limited - India
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