We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 16 September 19
SCRUBBERS AND FUEL PROFIT SHARE CLAUSES - CLYDE&CO
 From 1 January 2020, Regulation 14 of MARPOL Annex VI provides that the sulphur content in fuel oil used on board ships shall be reduced from a maximum limit of 3.5% to a maximum limit of 0.5% (the limit in emission control areas remains at 0.1%). Regulation 4 of MARPOL Annex VI permits equivalent methods of compliance provided such methods are at least as effective in terms of emissions reductions.
Whilst it is up to individual port state control and flag states to implement and enforce MARPOL Annex VI, the use of Exhaust Gas Cleaning Systems (“Scrubbers”) is widely expected to be a legitimate option as an equivalent method of compliance.
The anticipated key financial benefit for Owners that have invested or are considering in investing in Scrubber-fitted vessels, is that there will be substantial savings in the cost of trading the vessels due to the expected price differential between fuels with a high sulphur content and ‘compliant’ fuels with a low sulphur content. For example, this week press reports suggest that the fuels currently being traded result in a price differential of about $150-$250 per mt between 0.5% sulphur fuels and high sulphur fuels and predict a price differential of over $400 per mt in 2020 (the differential between high sulphur fuels and 0.1% sulphur fuels is greater).1
Owners have various options available to them in terms of benefitting from the expected fuel differential for Scrubber-fitted vessels.
For example, if Owners are spot trading their Scrubber-fitted vessels, typically it is Owners that pay for the fuel so Owners will therefore benefit from the lower costs of burning high sulphur fuels. If Owners are time chartering their vessel, typically under a time charterparty Charterers will pay for the fuel so Charterers will therefore benefit from the lower costs of burning high sulphur fuel. In consideration for providing this benefit under a time charter, Owners may simply demand a higher charter rate or a ‘scrubber premium’ on the market charter rate.
Alternatively, there are a number of creative ways in which Owners and Charterers can share the benefit of the expected or actual fuel savings for Scrubber-fitted vessels. One of these ways is through implementing a fuel profit-sharing scrubber clause (“FPS Scrubber Clause”) into the time charterparty. It has been reported in the press recently that these are being used with good effect by some owners to keep charter rates competitive.2
There are a number of different legal, operational and commercial factors which will have to be considered in negotiating and drafting FPS Scrubber Clauses and so it is unlikely there is a one-size fits all FPS Scrubber Clause that can be applied across the market. By way of example, the ongoing delay to an intended Bimco industry-standard scrubber clause is illustrative of the complexity and competing interests at play. For example, if owners are bearing the majority of the capital risk and operational risk of the Scrubber, then should owners be entitled to the majority of the benefit of the fuel differential? In the event that the Scrubber is not operational for technical or regulatory reasons, who is responsible for providing compliant low sulphur fuel?
An FPS Scrubber Clause is an innovative way for Owners and Charterers to allocate the anticipated risks and benefits of complying with the implementation of MARPOL Annex VI from 1 January 2020 through the use of Scrubbers. James Kennedy and Fanos Theophani have been involved in the negotiation and drafting of FPS Scrubber Clauses and are well placed to advise and assist the market on these issues.
1 “Songa Container pioneers profit-sharing scrubber clause” Tradewinds 30 August 2019
2 “IMO2020: RAI 2020 Marine Fuel Availability Study Re-Boot” Ship and Bunker 3 September 2019, and “IMO2020: Rollercoaster HSFO Prices Send Singapore VLSFO Premiums Under $85/mt” Ship and Bunker 30 August 2019
Source: Clyde&Co
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 11 October 19
KOREA SOUTH-EAST POWER TO IMPORT LCV COAL IN NOVEMBER
COALspot.com: South Korea’s Korea South-East Power Co., Ltd. (KOEN) has issued an international tender for 75,000 Metric Tons low calorific v ...
Thursday, 10 October 19
THERMAL COAL IMPORT LIKELY TO CROSS 200 MT IN 2019-20 - TIME OF INDIA
The country's overall thermal coal import is likely to cross the 200-million tonnes (MT) mark in the current financial year, according to Icra. ...
Wednesday, 09 October 19
SHIPPING MARKET INSIGHT - INTERMODAL
As we have already stated in previous insights, we had expected that the recovery on rates and activity across all segments in the offshore market ...
Thursday, 03 October 19
OIL PRICE ASSUMPTIONS UNCHANGED, NBP GAS PRICE LOWERED - FITCH RATINGS PRIMARY - FITCH RATINGS
Our oil price assumptions are unchanged, despite the recent price volatility following the attacks on Saudi Arabia's oil infrastructure, Fitch ...
Thursday, 03 October 19
SHIPPING MARKET INSIGHT
Edible oil products across the board are showing healthy amount of export activity, however, rates in most cases are struggling to move accordingly ...
|
|
|
Showing 1321 to 1325 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Edison Trading Spa - Italy
- Billiton Holdings Pty Ltd - Australia
- Attock Cement Pakistan Limited
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Finance - Indonesia
- SMC Global Power, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Kumho Petrochemical, South Korea
- Miang Besar Coal Terminal - Indonesia
- Vedanta Resources Plc - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Heidelberg Cement - Germany
- Metalloyd Limited - United Kingdom
- Straits Asia Resources Limited - Singapore
- Toyota Tsusho Corporation, Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- AsiaOL BioFuels Corp., Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maheswari Brothers Coal Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- London Commodity Brokers - England
- Minerals Council of Australia
- Dalmia Cement Bharat India
- Renaissance Capital - South Africa
- Ministry of Mines - Canada
- PowerSource Philippines DevCo
- Sojitz Corporation - Japan
- The State Trading Corporation of India Ltd
- Eastern Coal Council - USA
- Kartika Selabumi Mining - Indonesia
- Samtan Co., Ltd - South Korea
- CIMB Investment Bank - Malaysia
- Jorong Barutama Greston.PT - Indonesia
- The Treasury - Australian Government
- Ind-Barath Power Infra Limited - India
- Price Waterhouse Coopers - Russia
- Mjunction Services Limited - India
- Port Waratah Coal Services - Australia
- Electricity Generating Authority of Thailand
- Rashtriya Ispat Nigam Limited - India
- Ambuja Cements Ltd - India
- Commonwealth Bank - Australia
- India Bulls Power Limited - India
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Iligan Light & Power Inc, Philippines
- Uttam Galva Steels Limited - India
- TeaM Sual Corporation - Philippines
- Makarim & Taira - Indonesia
- Sarangani Energy Corporation, Philippines
- Carbofer General Trading SA - India
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Meralco Power Generation, Philippines
- Energy Development Corp, Philippines
- Marubeni Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- Sical Logistics Limited - India
- Siam City Cement - Thailand
- GN Power Mariveles Coal Plant, Philippines
- OPG Power Generation Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Global Business Power Corporation, Philippines
- Chamber of Mines of South Africa
- Bulk Trading Sa - Switzerland
- PTC India Limited - India
- Wilmar Investment Holdings
- Formosa Plastics Group - Taiwan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Lanco Infratech Ltd - India
- Oldendorff Carriers - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- The University of Queensland
- Bharathi Cement Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Sindya Power Generating Company Private Ltd
- Electricity Authority, New Zealand
- Orica Australia Pty. Ltd.
- Coalindo Energy - Indonesia
- Siam City Cement PLC, Thailand
- Indian Oil Corporation Limited
- Xindia Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining Corp, Philippines
- Bhatia International Limited - India
- Indika Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Thai Mozambique Logistica
- Timah Investasi Mineral - Indoneisa
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- Barasentosa Lestari - Indonesia
- New Zealand Coal & Carbon
- VISA Power Limited - India
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Star Paper Mills Limited - India
- Leighton Contractors Pty Ltd - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- PetroVietnam Power Coal Import and Supply Company
- Bukit Baiduri Energy - Indonesia
- Altura Mining Limited, Indonesia
- CNBM International Corporation - China
- Krishnapatnam Port Company Ltd. - India
- Global Coal Blending Company Limited - Australia
- Australian Coal Association
- Videocon Industries ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Manunggal Multi Energi - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Merrill Lynch Commodities Europe
- Sinarmas Energy and Mining - Indonesia
- Jaiprakash Power Ventures ltd
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- Trasteel International SA, Italy
- Planning Commission, India
- Jindal Steel & Power Ltd - India
- Sakthi Sugars Limited - India
- Wood Mackenzie - Singapore
- SN Aboitiz Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Romanian Commodities Exchange
- Sree Jayajothi Cements Limited - India
- Neyveli Lignite Corporation Ltd, - India
- ICICI Bank Limited - India
- MS Steel International - UAE
- Bhushan Steel Limited - India
- GVK Power & Infra Limited - India
- Agrawal Coal Company - India
- Salva Resources Pvt Ltd - India
- Africa Commodities Group - South Africa
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- San Jose City I Power Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Borneo Indobara - Indonesia
- Indonesian Coal Mining Association
- Coastal Gujarat Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GMR Energy Limited - India
- Deloitte Consulting - India
- Mintek Dendrill Indonesia
- Parry Sugars Refinery, India
- Karaikal Port Pvt Ltd - India
- Medco Energi Mining Internasional
- Standard Chartered Bank - UAE
- South Luzon Thermal Energy Corporation
- Orica Mining Services - Indonesia
- Vizag Seaport Private Limited - India
- Essar Steel Hazira Ltd - India
- Therma Luzon, Inc, Philippines
- Cement Manufacturers Association - India
- Georgia Ports Authority, United States
- Indo Tambangraya Megah - Indonesia
- Meenaskhi Energy Private Limited - India
- Kideco Jaya Agung - Indonesia
- Kaltim Prima Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Aditya Birla Group - India
- Ministry of Transport, Egypt
- Power Finance Corporation Ltd., India
- McConnell Dowell - Australia
- European Bulk Services B.V. - Netherlands
- Binh Thuan Hamico - Vietnam
- Kobexindo Tractors - Indoneisa
- Indian Energy Exchange, India
- Goldman Sachs - Singapore
- Indogreen Group - Indonesia
- Petron Corporation, Philippines
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- Tata Chemicals Ltd - India
- Posco Energy - South Korea
- Coal and Oil Company - UAE
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Economic Council, Georgia
- Petrochimia International Co. Ltd.- Taiwan
- ASAPP Information Group - India
- Bangladesh Power Developement Board
- Kohat Cement Company Ltd. - Pakistan
- Grasim Industreis Ltd - India
- Riau Bara Harum - Indonesia
- Directorate Of Revenue Intelligence - India
- Globalindo Alam Lestari - Indonesia
- Latin American Coal - Colombia
- SMG Consultants - Indonesia
- Thiess Contractors Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Madhucon Powers Ltd - India
- Australian Commodity Traders Exchange
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- Anglo American - United Kingdom
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
|
| |
| |
|
