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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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Tuesday, 18 December 18
TOBA BARA ACQUIRES SHARES OF PT BATU HITAM PERKASA
PT Toba Bara Sejahtra Tbk, through its subsidiary PT Toba Bara Energi (“TBE”), has acquired shares ...
Monday, 17 December 18
SUPRAMAX THERE WAS STRONGER DEMAND FROM SOUTHEAST ASIA, WITH MORE COAL BEING SHIPPED - BALTIC BRIEFING
Capesize
A positive end to last week after a somewhat uncertain start as some gains made were eroded. Rates recovered later for West Australia/ ...
Monday, 17 December 18
SOUTH KOREA STATE-OWNED UTILITY KOREA EAST-WEST POWER CO. LTD ISSUED A TENDER FOR MAX 3.220 MILLION TONS OF 4200 TO 5900 NAR COAL
COALspot.com: South Korea state-owned utility Korea East-West Power Co. Ltd (EWP) issued a tender for max 3,220,000 Metric Tons of coal to be loade ...
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 operat ...
Friday, 14 December 18
KOSPO INVITED BIDS FOR 320,000 MT OF LOW CALORIFIC VALUE COAL
COALspot.com: South Korea state-owned utility Korea Southern Power Co. Ltd (KOSPO) issued a tender for 320,000 MT of min 4,300 kcal/kg NCV coal per ...
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- Commonwealth Bank - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Salva Resources Pvt Ltd - India
- Vedanta Resources Plc - India
- Price Waterhouse Coopers - Russia
- Meenaskhi Energy Private Limited - India
- Energy Development Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Sidhee Cement - India
- Maharashtra Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Chamber of Mines of South Africa
- Indonesian Coal Mining Association
- White Energy Company Limited
- Maheswari Brothers Coal Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Attock Cement Pakistan Limited
- Mercuria Energy - Indonesia
- Thiess Contractors Indonesia
- The University of Queensland
- Parliament of New Zealand
- The Treasury - Australian Government
- Iligan Light & Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Vizag Seaport Private Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Interocean Group of Companies - India
- Dalmia Cement Bharat India
- Directorate General of MIneral and Coal - Indonesia
- Bhushan Steel Limited - India
- Baramulti Group, Indonesia
- Sindya Power Generating Company Private Ltd
- Alfred C Toepfer International GmbH - Germany
- Karaikal Port Pvt Ltd - India
- Central Electricity Authority - India
- ICICI Bank Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- International Coal Ventures Pvt Ltd - India
- Lanco Infratech Ltd - India
- Standard Chartered Bank - UAE
- Xindia Steels Limited - India
- Directorate Of Revenue Intelligence - India
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
- South Luzon Thermal Energy Corporation
- Sical Logistics Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Port Waratah Coal Services - Australia
- Thai Mozambique Logistica
- Sojitz Corporation - Japan
- Global Green Power PLC Corporation, Philippines
- Edison Trading Spa - Italy
- Merrill Lynch Commodities Europe
- Kartika Selabumi Mining - Indonesia
- Latin American Coal - Colombia
- Formosa Plastics Group - Taiwan
- Altura Mining Limited, Indonesia
- Georgia Ports Authority, United States
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- Jaiprakash Power Ventures ltd
- Global Coal Blending Company Limited - Australia
- Star Paper Mills Limited - India
- Eastern Energy - Thailand
- Medco Energi Mining Internasional
- SMC Global Power, Philippines
- Bangladesh Power Developement Board
- PowerSource Philippines DevCo
- LBH Netherlands Bv - Netherlands
- Energy Link Ltd, New Zealand
- Planning Commission, India
- Barasentosa Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- Deloitte Consulting - India
- Central Java Power - Indonesia
- PNOC Exploration Corporation - Philippines
- Carbofer General Trading SA - India
- Kideco Jaya Agung - Indonesia
- Wilmar Investment Holdings
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Cement Manufacturers Association - India
- Mercator Lines Limited - India
- Heidelberg Cement - Germany
- Power Finance Corporation Ltd., India
- Coal and Oil Company - UAE
- Antam Resourcindo - Indonesia
- Kapuas Tunggal Persada - Indonesia
- GAC Shipping (India) Pvt Ltd
- Sree Jayajothi Cements Limited - India
- London Commodity Brokers - England
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Bulk Trading Sa - Switzerland
- Oldendorff Carriers - Singapore
- Globalindo Alam Lestari - Indonesia
- Kepco SPC Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Indogreen Group - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sakthi Sugars Limited - India
- Agrawal Coal Company - India
- PTC India Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Global Business Power Corporation, Philippines
- New Zealand Coal & Carbon
- Kumho Petrochemical, South Korea
- Siam City Cement - Thailand
- Ministry of Transport, Egypt
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- TNB Fuel Sdn Bhd - Malaysia
- European Bulk Services B.V. - Netherlands
- Australian Commodity Traders Exchange
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- Orica Australia Pty. Ltd.
- Sarangani Energy Corporation, Philippines
- GVK Power & Infra Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Economic Council, Georgia
- Sinarmas Energy and Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Tata Chemicals Ltd - India
- Toyota Tsusho Corporation, Japan
- Kobexindo Tractors - Indoneisa
- Anglo American - United Kingdom
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- The State Trading Corporation of India Ltd
- Therma Luzon, Inc, Philippines
- Marubeni Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Wood Mackenzie - Singapore
- Banpu Public Company Limited - Thailand
- Electricity Generating Authority of Thailand
- TeaM Sual Corporation - Philippines
- Independent Power Producers Association of India
- Kaltim Prima Coal - Indonesia
- SMG Consultants - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Borneo Indobara - Indonesia
- Simpson Spence & Young - Indonesia
- Bharathi Cement Corporation - India
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Trasteel International SA, Italy
- Ind-Barath Power Infra Limited - India
- Malabar Cements Ltd - India
- Orica Mining Services - Indonesia
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Indika Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Minerals Council of Australia
- Indian Oil Corporation Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Intertek Mineral Services - Indonesia
- Electricity Authority, New Zealand
- Indian Energy Exchange, India
- Timah Investasi Mineral - Indoneisa
- India Bulls Power Limited - India
- Jindal Steel & Power Ltd - India
- Chettinad Cement Corporation Ltd - India
- Africa Commodities Group - South Africa
- Riau Bara Harum - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Videocon Industries ltd - India
- Mintek Dendrill Indonesia
- GMR Energy Limited - India
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- Rio Tinto Coal - Australia
- Madhucon Powers Ltd - India
- MS Steel International - UAE
- IHS Mccloskey Coal Group - USA
- Bhatia International Limited - India
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Leighton Contractors Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- VISA Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Romanian Commodities Exchange
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Aboitiz Power Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- McConnell Dowell - Australia
- Ambuja Cements Ltd - India
- Manunggal Multi Energi - Indonesia
- Pendopo Energi Batubara - Indonesia
- ASAPP Information Group - India
- Cigading International Bulk Terminal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Parry Sugars Refinery, India
- CNBM International Corporation - China
- Makarim & Taira - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Finance - Indonesia
- Rashtriya Ispat Nigam Limited - India
- SN Aboitiz Power Inc, Philippines
- Australian Coal Association
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