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Saturday, 29 May 21
SKULD’S IMO 2020 SULPHUR CAP EXPERIENCE
 More than a year has passed since the International Maritime Organization (IMO) mandate for the 0.50% sulphur cap for marine fuel (MARPOL Annex VI) came into force. The regulation orders ships to only use marine fuels with a sulphur content of no more than 0.50% sulphur. Ships fitted with an approved type of exhaust gas cleaning system (EGCS) or scrubbers may continue to use high sulphur fuel oils. This mandate is part of the IMO efforts to reduce air pollution and improve health and environmental conditions especially for communities close to coastal areas or ports.
Prior to 1 January 2020, there were extensive discussions in the industry on what to expect regarding the challenges VLSFO would pose in terms of operational issues and engine damage as well as challenges regarding supply of VLSFO. The most frequent parameter limits deviating from the ISO 8217 standard, reported by our members and clients, are TSP (Total Sediments Potential), Aluminium and Silicon, Sulphur, Pour Point, Flash Point and Viscosity. We see several cases regarding increased sludge deposits in the fuel system, increased sludge accumulation in the purifiers, as well as clogged fuel oil filters. Others have experienced increased wear and tear of cylinder liners, broken piston rings, fuel pumps or other components, due to increased amounts of catalytic fines in the fuel oil. Some members have de-bunkered fuel which cannot be handled and treated onboard.
Interestingly, the number of claims reported to Skuld are not significantly higher for VLSFO compared to other fuel. If we look at the bad bunker cases in 2019 (FDD and CLH) the number of claims are higher than before the introduction of the IMO 2020 fuel. In 2019 Skuld saw 435 bunker related claims on FDD and CLH combined, compared to 369 in 2020. Skuld also experiences a decrease in bunker related issues and claims in Q1 of 2021 compared to Q1 in 2020. In total, Skuld can report 30 cases so far in 2021.
Skuld always advises its members and clients to perform a proper due diligence when ordering or procuring bunker. It is very important to always conduct a vetting procedure when selecting good bunker suppliers. Always check the sales terms like time bars, sampling clause as well as the warranty as to the fitness of the fuel. Always ask for documentation of fuel batches from the fuel supplier. Ask, and always check the Certificate of Quality prior to bunkering. We also recommend the ISO 8217:2017 standard rather than the more commonly used ISO 8217:2010. Also, avoid mixing of different types of fuels, as VLSFO is very sensitive and even small amounts of co-mingling will make the fuel unstable.
When using VLSFO blends the operators should be aware of the potential operational challenges they may be facing. ISO 8217 does not include testing for WAT (Wax Appearance Temperature) and WDT (Wax Disappearance Temperature), thus measuring only the Pour Point is insufficient to determine the cold flow properties of the fuel. When the WAT and WDT results are high the operator needs to consider increasing the temperature setting of the purifiers, as well as the storage, settling and service tanks.
VLSFO blends which tend to become unstable contain high sediments that tend to fall out of suspension when the fuel is heated above the required temperature. The fuel temperature must then be reduced and maintained as per separator manufacturer’s recommendations. VLSFO with low viscosity, but with a high WDT / WAT, needs to be heated to ensure correct viscosity or stable flow and to prevent wax formation. There is also a risk of operational issues such as wax formation when the fuel temperature drops below the WAT. Fuel with low viscosity, high WDT/WAT and high level of Aluminium + Silicon (cat fines) might be difficult to treat onboard.
Skuld’s members and clients have experienced that the IMO 2020 0.50% Sulphur Cap presents some additional challenges. As a new type of marine fuel being introduced in the industry, crew onboard did not have enough experience on how to handle and treat this type of fuel at the start of 2020. Operational issues, not linked to the fuel quality but more on the understanding of the characteristics or nature of VLSFO, have included issues related to the paraffinic nature of the fuel, cold flow properties, lower viscosity, as well as other parameters. Today, Skuld sees a greater understanding by the industry and operators and less of those ‘mysterious’ problems involving filter clogging and purification problems experienced in the first and second quarter of 2020. The onboard operators are increasingly more familiar with the actual characteristics or nature of VLSFO.
In Skuld’s opinion so far, the IMO 2020 Sulphur Cap represents a successful transition.
Source: Skuld
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Tuesday, 25 May 21
KOREA SOUTHERN POWER INVITED BIDS FOR 870,000 MT OF MIN 5300 NCV COAL FOR 2021 TO 2023.
COALspot.com: Korea Southern Power Co., Ltd. (KOSPO) has issued an International tender for total 870,000 MT of Min 5,300 kcal/kg NCV coal for Augu ...
Tuesday, 25 May 21
CHINA’S COAL OUTPUT RISES IN FIRST FOUR MONTHS - XINHUA
China’s raw coal output rose 11.1 percent year on year to 1.29 billion tonnes in the first four months of 2021, official data showed.
&nb ...
Tuesday, 25 May 21
MARINE SHIPPERS BULK UP: ANOTHER GAME OF CHICKEN IN THE WORKS? - THE KOREA TIMES
Global shipping companies have been placing orders for large ships, with many anticipating further increased competition within the next three year ...
Friday, 21 May 21
MARKET INSIGHT - INTERMODAL
The dry bulk market’s counter seasonal surge so far into the first half of the year -in a sort of 2010 manner - and Capesize’s recent r ...
Wednesday, 12 May 21
U.S. COAL PRODUCTION TO INCREASE BY 43 MMST IN 2021 TOTAL 582 MILLION SHORT TONS - EIA
U.S. energy Information Administration expects U.S. coal production to total 582 million short tons (MMst) in 2021, 43 MMst (8%) more than in 2020. ...
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- Tata Chemicals Ltd - India
- Eastern Coal Council - USA
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cement Manufacturers Association - India
- Tamil Nadu electricity Board
- Heidelberg Cement - Germany
- Siam City Cement PLC, Thailand
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Eastern Energy - Thailand
- Timah Investasi Mineral - Indoneisa
- Ambuja Cements Ltd - India
- Kumho Petrochemical, South Korea
- GN Power Mariveles Coal Plant, Philippines
- IHS Mccloskey Coal Group - USA
- Aboitiz Power Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Global Business Power Corporation, Philippines
- Mjunction Services Limited - India
- Pendopo Energi Batubara - Indonesia
- Sojitz Corporation - Japan
- India Bulls Power Limited - India
- PNOC Exploration Corporation - Philippines
- Star Paper Mills Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Minerals Council of Australia
- White Energy Company Limited
- Bhushan Steel Limited - India
- Singapore Mercantile Exchange
- Medco Energi Mining Internasional
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Neyveli Lignite Corporation Ltd, - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Central Electricity Authority - India
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Samtan Co., Ltd - South Korea
- Mintek Dendrill Indonesia
- Sinarmas Energy and Mining - Indonesia
- Romanian Commodities Exchange
- Rashtriya Ispat Nigam Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- Electricity Authority, New Zealand
- The Treasury - Australian Government
- Edison Trading Spa - Italy
- Semirara Mining and Power Corporation, Philippines
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Holcim Trading Pte Ltd - Singapore
- Orica Mining Services - Indonesia
- OPG Power Generation Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- GMR Energy Limited - India
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Electricity Generating Authority of Thailand
- Anglo American - United Kingdom
- Riau Bara Harum - Indonesia
- Coal and Oil Company - UAE
- Globalindo Alam Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Altura Mining Limited, Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bharathi Cement Corporation - India
- Orica Australia Pty. Ltd.
- Jindal Steel & Power Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sindya Power Generating Company Private Ltd
- Petron Corporation, Philippines
- Oldendorff Carriers - Singapore
- Agrawal Coal Company - India
- MS Steel International - UAE
- Mercator Lines Limited - India
- Sarangani Energy Corporation, Philippines
- Commonwealth Bank - Australia
- Iligan Light & Power Inc, Philippines
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- The University of Queensland
- Sical Logistics Limited - India
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement - Thailand
- McConnell Dowell - Australia
- The State Trading Corporation of India Ltd
- Larsen & Toubro Limited - India
- Ind-Barath Power Infra Limited - India
- Planning Commission, India
- TeaM Sual Corporation - Philippines
- Ministry of Transport, Egypt
- Madhucon Powers Ltd - India
- Trasteel International SA, Italy
- Savvy Resources Ltd - HongKong
- Directorate General of MIneral and Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Banpu Public Company Limited - Thailand
- Formosa Plastics Group - Taiwan
- Karbindo Abesyapradhi - Indoneisa
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- Indonesian Coal Mining Association
- Deloitte Consulting - India
- Global Coal Blending Company Limited - Australia
- San Jose City I Power Corp, Philippines
- Wood Mackenzie - Singapore
- Indian Oil Corporation Limited
- Carbofer General Trading SA - India
- Mercuria Energy - Indonesia
- ASAPP Information Group - India
- Bhoruka Overseas - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- Dalmia Cement Bharat India
- Aditya Birla Group - India
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- Uttam Galva Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Attock Cement Pakistan Limited
- Coalindo Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Africa Commodities Group - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Power Finance Corporation Ltd., India
- Krishnapatnam Port Company Ltd. - India
- Indian Energy Exchange, India
- Binh Thuan Hamico - Vietnam
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Metalloyd Limited - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Baramulti Group, Indonesia
- Merrill Lynch Commodities Europe
- Indika Energy - Indonesia
- Standard Chartered Bank - UAE
- Independent Power Producers Association of India
- Grasim Industreis Ltd - India
- Ministry of Finance - Indonesia
- Thai Mozambique Logistica
- PowerSource Philippines DevCo
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Meenaskhi Energy Private Limited - India
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- South Luzon Thermal Energy Corporation
- Ceylon Electricity Board - Sri Lanka
- Vizag Seaport Private Limited - India
- Therma Luzon, Inc, Philippines
- Xindia Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Lanco Infratech Ltd - India
- Jaiprakash Power Ventures ltd
- Central Java Power - Indonesia
- GAC Shipping (India) Pvt Ltd
- Cigading International Bulk Terminal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Coastal Gujarat Power Limited - India
- Global Green Power PLC Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Latin American Coal - Colombia
- Salva Resources Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Chamber of Mines of South Africa
- Kaltim Prima Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Bulk Trading Sa - Switzerland
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- SN Aboitiz Power Inc, Philippines
- Goldman Sachs - Singapore
- Sakthi Sugars Limited - India
- Bukit Baiduri Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- CNBM International Corporation - China
- VISA Power Limited - India
- SMG Consultants - Indonesia
- Barasentosa Lestari - Indonesia
- GVK Power & Infra Limited - India
- Bhatia International Limited - India
- Parliament of New Zealand
- Australian Commodity Traders Exchange
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Borneo Indobara - Indonesia
- London Commodity Brokers - England
- Posco Energy - South Korea
- Australian Coal Association
- International Coal Ventures Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Vedanta Resources Plc - India
- Toyota Tsusho Corporation, Japan
- Videocon Industries ltd - India
- Manunggal Multi Energi - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Malabar Cements Ltd - India
- Marubeni Corporation - India
- Wilmar Investment Holdings
- LBH Netherlands Bv - Netherlands
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