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Saturday, 15 December 18
COMING CHANGES IN MARINE FUEL SULFUR LIMITS WILL AFFECT GLOBAL OIL MARKETS - EIA
 International regulations limiting sulfur in fuels for ocean-going vessels, set to take effect in January 2020, have implications for vessel operators, refiners, and global oil markets. Stakeholders will respond to these regulations in different ways, increasing uncertainty for crude oil and petroleum product price formation in both the short and long term.
When burned, the sulfur in marine fuel produces sulfur dioxide, a precursor to acid rain. The sulfur content of transportation fuels has been declining for many years because of increasingly stringent regulations implemented by individual countries or groups of countries. In the United States, federal and state regulations limit the amount of sulfur present in motor gasoline, diesel fuel, and heating oil.
The upcoming 2020 rules apply across multiple countries’ jurisdictions to fuels used in the open ocean, representing the largest portion of the approximately 3.9 million barrel per day global marine fuel market, according to the International Energy Agency.
The International Maritime Organization (IMO), the 171-member state United Nations agency that sets standards for shipping, is set to reduce the maximum amount of sulfur content (by percent weight) in marine fuels used on the open seas from 3.5% to 0.5% by 2020. These regulations are intended to reduce sulfur dioxide, nitrogen oxides, and other pollutants from global ship exhaust.
The 2020 reduction in sulfur limits follows a series of similar reductions in marine fuel sulfur limits, such as those that reduced sulfur content of marine fuels in IMO-designated Emission Control Areas from 1.0% to 0.1% in 2015. Other areas around ports in Europe and parts of China have adopted similar sulfur restrictions.
Vessel operators have several choices for compliance with the new IMO sulfur limits. One option is to switch to a lower-sulfur fuel compliant with the new IMO rules. However, the cost, widespread availability, and specifications of a new fuel for use in marine engines is still uncertain.
Another option is to use scrubbers to remove pollutants from ships’ exhaust, allowing them to continue to use higher-sulfur fuels. However, the process of installing scrubbers can be costly and can increase a ship’s operating costs. A small portion of existing marine vessels has already installed scrubbers, and that portion is not expected to increase greatly before 2020 because of time constraints and limited installation capacity. Even if scrubbers become widely adopted, which would allow the continued use of fuels with higher-sulfur content, the price and availability of higher-sulfur fuels after 2020 remains uncertain.
Ships also have the option to switch to nonpetroleum-based fuels. Some newer ships and some currently being built have dual-fuel engines that would allow them to use nonpetroleum-based fuels such as liquefied natural gas (LNG) after minimal modifications. However, the infrastructure to support use of LNG as a shipping fuel is currently limited in both scale and availability.
The upcoming IMO regulations pose a significant challenge for global petroleum refineries: how to increase the supply of low sulfur products for use in marine applications and minimize the output of high sulfur oils.
Residual oil—the long-chain hydrocarbons remaining after lighter and shorter hydrocarbons such as gasoline and diesel have been separated from crude oil—currently makes up the largest component of marine fuels used by large ocean-going vessels, also known as bunker fuel. Removing sulfur from residual oils or upgrading them to more valuable lighter products such as diesel and gasoline can be an expensive and capital-intensive process.
The choice of compliance path for vessels also introduces a risk to refiners: if scrubbers become widely adopted, higher-sulfur residual oils might still be used, potentially reducing the value of existing and new refining units capable of upgrading the residual oils.
One approach refineries could pursue is to divert more low sulfur distillate fuel into the bunker fuel market, which would mean ocean-going ships would be competing with trucks, heavy equipment, trains, and planes for supplies of distillate fuels at a time when global demand for distillate is already high. To respond to added demand for distillate fuels, refineries can increase the rate they process crude oil or invest and build more refinery capacity to produce distillate fuels. Both options would increase demand for crude oil.
Refineries might also choose to process crude oils that are lower in sulfur, yield a greater amount of distillates, and yield lower amounts of residual oils. Changes in the types of crude oil refineries purchase would then change how different crude oils are priced relative to each other and crude prices overall.
The decisions refiners and shippers make in response to the IMO 2020 rules heavily influence one another, adding to uncertainty and complexity. In January 2019, EIA will release the first Short-Term Energy Outlook that includes monthly projections through December 2020. This report will discuss short-term implications and uncertainties surrounding the IMO regulations. Later that month, the Annual Energy Outlook 2019 will describe potential long-term implications of the regulations.
Principal contributor: Mason Hamilton
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Wednesday, 19 December 18
GLOBAL COAL DEMAND SET TO REMAIN STABLE THROUGH 2023, DESPITE HEADWINDS - IEA
While global coal demand looks set to rise for the second year in a row in 2018, it is forecast to remain stable over the next five years, as decli ...
Wednesday, 19 December 18
GLOBAL SHIPPING SCOUTS FOR FUTURE GROWTH - PETER SAND, BIMCO
Where do we go to find economic growth that spurs shipping demand in the next five years? According to the International Monetary Fund (IMF), we sh ...
Wednesday, 19 December 18
SHIPPING MARKET INSIGHT - INTERMODAL
As another year is coming to an end, it is interesting to look at the main shipping markets and how these performed compared to 2017.
&nb ...
Tuesday, 18 December 18
COAL DEMAND WILL REMAIN STEADY THROUGH 2023, INTERNATIONAL ENERGY AGENCY SAYS - TOM DICHRISTOPHER, CNBC
Coal consumption is on the rise but will remain roughly stable over the next five years, the International Energy Agency forecasts.
...
Tuesday, 18 December 18
DRY BULK: IN ABSOLUTE TERMS, ALL MAIN SIZE SEGMENTS SAW THEIR ACTUAL VOLATILITY FIGURES DECREASE - ALLIED
Since the beginning of 2016, when the dry bulk market reached its absolute bottom, freight rates have been ever since on an upward trajectory. Taki ...
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Showing 1521 to 1525 news of total 6871 |
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- GAC Shipping (India) Pvt Ltd
- Directorate Of Revenue Intelligence - India
- Ministry of Mines - Canada
- Coal and Oil Company - UAE
- Parliament of New Zealand
- PowerSource Philippines DevCo
- Sakthi Sugars Limited - India
- Australian Coal Association
- San Jose City I Power Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Bhatia International Limited - India
- Gujarat Sidhee Cement - India
- PNOC Exploration Corporation - Philippines
- Therma Luzon, Inc, Philippines
- Singapore Mercantile Exchange
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- McConnell Dowell - Australia
- Commonwealth Bank - Australia
- Siam City Cement PLC, Thailand
- Ministry of Finance - Indonesia
- Bulk Trading Sa - Switzerland
- Planning Commission, India
- Edison Trading Spa - Italy
- Semirara Mining Corp, Philippines
- Siam City Cement - Thailand
- Power Finance Corporation Ltd., India
- Chettinad Cement Corporation Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mercator Lines Limited - India
- Aboitiz Power Corporation - Philippines
- MS Steel International - UAE
- Indonesian Coal Mining Association
- Kartika Selabumi Mining - Indonesia
- The University of Queensland
- Bharathi Cement Corporation - India
- Standard Chartered Bank - UAE
- Star Paper Mills Limited - India
- Eastern Energy - Thailand
- India Bulls Power Limited - India
- Formosa Plastics Group - Taiwan
- Simpson Spence & Young - Indonesia
- Binh Thuan Hamico - Vietnam
- Ambuja Cements Ltd - India
- Riau Bara Harum - Indonesia
- Parry Sugars Refinery, India
- Orica Mining Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- London Commodity Brokers - England
- Baramulti Group, Indonesia
- Global Green Power PLC Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Maharashtra Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Indogreen Group - Indonesia
- Metalloyd Limited - United Kingdom
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- Petron Corporation, Philippines
- Sojitz Corporation - Japan
- Renaissance Capital - South Africa
- Central Electricity Authority - India
- Independent Power Producers Association of India
- Georgia Ports Authority, United States
- Orica Australia Pty. Ltd.
- Minerals Council of Australia
- Ceylon Electricity Board - Sri Lanka
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- Ministry of Transport, Egypt
- Videocon Industries ltd - India
- Lanco Infratech Ltd - India
- Goldman Sachs - Singapore
- LBH Netherlands Bv - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Oil Corporation Limited
- Essar Steel Hazira Ltd - India
- Rio Tinto Coal - Australia
- Kapuas Tunggal Persada - Indonesia
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Antam Resourcindo - Indonesia
- Energy Development Corp, Philippines
- Mjunction Services Limited - India
- SMG Consultants - Indonesia
- Port Waratah Coal Services - Australia
- Iligan Light & Power Inc, Philippines
- CIMB Investment Bank - Malaysia
- Pendopo Energi Batubara - Indonesia
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Heidelberg Cement - Germany
- Attock Cement Pakistan Limited
- Energy Link Ltd, New Zealand
- Toyota Tsusho Corporation, Japan
- Electricity Generating Authority of Thailand
- Miang Besar Coal Terminal - Indonesia
- Coalindo Energy - Indonesia
- Latin American Coal - Colombia
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- Kumho Petrochemical, South Korea
- Tamil Nadu electricity Board
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dalmia Cement Bharat India
- Xindia Steels Limited - India
- ICICI Bank Limited - India
- Salva Resources Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Agrawal Coal Company - India
- Rashtriya Ispat Nigam Limited - India
- Leighton Contractors Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Mineral Development Corp Ltd - India
- TeaM Sual Corporation - Philippines
- Larsen & Toubro Limited - India
- Jorong Barutama Greston.PT - Indonesia
- ASAPP Information Group - India
- CNBM International Corporation - China
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- New Zealand Coal & Carbon
- GN Power Mariveles Coal Plant, Philippines
- SN Aboitiz Power Inc, Philippines
- Marubeni Corporation - India
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Barasentosa Lestari - Indonesia
- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Karaikal Port Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Krishnapatnam Port Company Ltd. - India
- Maheswari Brothers Coal Limited - India
- Indika Energy - Indonesia
- Bhoruka Overseas - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- VISA Power Limited - India
- Jindal Steel & Power Ltd - India
- Price Waterhouse Coopers - Russia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Uttam Galva Steels Limited - India
- Tata Chemicals Ltd - India
- Kideco Jaya Agung - Indonesia
- Economic Council, Georgia
- Central Java Power - Indonesia
- Oldendorff Carriers - Singapore
- The Treasury - Australian Government
- Merrill Lynch Commodities Europe
- Samtan Co., Ltd - South Korea
- Wilmar Investment Holdings
- Cement Manufacturers Association - India
- Sinarmas Energy and Mining - Indonesia
- Trasteel International SA, Italy
- SMC Global Power, Philippines
- GMR Energy Limited - India
- International Coal Ventures Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Wood Mackenzie - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Manunggal Multi Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Makarim & Taira - Indonesia
- Deloitte Consulting - India
- GVK Power & Infra Limited - India
- Thiess Contractors Indonesia
- Kepco SPC Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Chamber of Mines of South Africa
- Kalimantan Lumbung Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- Borneo Indobara - Indonesia
- Romanian Commodities Exchange
- IEA Clean Coal Centre - UK
- Intertek Mineral Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Vizag Seaport Private Limited - India
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Vedanta Resources Plc - India
- Global Business Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Indian Energy Exchange, India
- The State Trading Corporation of India Ltd
- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Meralco Power Generation, Philippines
- Malabar Cements Ltd - India
- Africa Commodities Group - South Africa
- Savvy Resources Ltd - HongKong
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Bukit Asam (Persero) Tbk - Indonesia
- Anglo American - United Kingdom
- Holcim Trading Pte Ltd - Singapore
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