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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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Sunday, 18 April 21
WORLDSTEEL RAISES 2021 STEEL DEMAND GROWTH FORECAST TO 5.8% - WORLDSTEEL
The World Steel Association (worldsteel) today released its Short Range Outlook (SRO) for 2021 and 2022. worldsteel forecasts that steel demand wil ...
Sunday, 18 April 21
CHINA'S Q1 COAL OUTPUT RISES 16% ON STRONG DEMAND FOR WINTER HEATING - REUTERS
China’s coal output rose 16% in the first quarter from the same period last year, bolstered by strong demand for winter heating and robust in ...
Wednesday, 14 April 21
INDIA HAS A RECORD LEVEL OF STOCKPILED COAL DAMPENING NEED FOR NEW DOMESTIC MINES - IEEFA
Proposed coal mining expansions at odds with excess supply
India has stockpiled a record 132 million tonnes of coal – enough t ...
Wednesday, 14 April 21
BANGLADESH NEEDS A RENEWABLES FOCUS, NOT A SWITCH FROM 'COAL TO GAS' - IEEFA
Renewables are cheaper and more sustainable than gas imports, and can provide better energy security in developing nations
The emerg ...
Wednesday, 14 April 21
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX DOWN 1.10 PCT - XINHUA
China Taiyuan coal transaction price index stood at 138.05 points Monday, down 1.10 percent week on week.
The index, released by Chi ...
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- Meralco Power Generation, Philippines
- Toyota Tsusho Corporation, Japan
- Australian Coal Association
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Malabar Cements Ltd - India
- Merrill Lynch Commodities Europe
- MS Steel International - UAE
- Carbofer General Trading SA - India
- Mercator Lines Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Attock Cement Pakistan Limited
- The State Trading Corporation of India Ltd
- Jaiprakash Power Ventures ltd
- Medco Energi Mining Internasional
- Miang Besar Coal Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- ICICI Bank Limited - India
- Semirara Mining and Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Kapuas Tunggal Persada - Indonesia
- Central Java Power - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMC Global Power, Philippines
- Commonwealth Bank - Australia
- Riau Bara Harum - Indonesia
- PNOC Exploration Corporation - Philippines
- Orica Mining Services - Indonesia
- Pendopo Energi Batubara - Indonesia
- Electricity Generating Authority of Thailand
- Mintek Dendrill Indonesia
- Kobexindo Tractors - Indoneisa
- Aditya Birla Group - India
- Makarim & Taira - Indonesia
- Bukit Makmur.PT - Indonesia
- Chamber of Mines of South Africa
- Petrochimia International Co. Ltd.- Taiwan
- Energy Development Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Standard Chartered Bank - UAE
- Meenaskhi Energy Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Tata Chemicals Ltd - India
- Bulk Trading Sa - Switzerland
- IEA Clean Coal Centre - UK
- Indian Energy Exchange, India
- SN Aboitiz Power Inc, Philippines
- Bharathi Cement Corporation - India
- Petron Corporation, Philippines
- Latin American Coal - Colombia
- The Treasury - Australian Government
- Kideco Jaya Agung - Indonesia
- Heidelberg Cement - Germany
- Thai Mozambique Logistica
- Leighton Contractors Pty Ltd - Australia
- Ministry of Mines - Canada
- Planning Commission, India
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Metalloyd Limited - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Madhucon Powers Ltd - India
- Power Finance Corporation Ltd., India
- Essar Steel Hazira Ltd - India
- Bukit Baiduri Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- Coalindo Energy - Indonesia
- Posco Energy - South Korea
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Deloitte Consulting - India
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Rio Tinto Coal - Australia
- VISA Power Limited - India
- Bangladesh Power Developement Board
- Dalmia Cement Bharat India
- Jindal Steel & Power Ltd - India
- Salva Resources Pvt Ltd - India
- The University of Queensland
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- New Zealand Coal & Carbon
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Transport, Egypt
- Bukit Asam (Persero) Tbk - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bhoruka Overseas - Indonesia
- Vizag Seaport Private Limited - India
- Sojitz Corporation - Japan
- Altura Mining Limited, Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Videocon Industries ltd - India
- Eastern Energy - Thailand
- Africa Commodities Group - South Africa
- Binh Thuan Hamico - Vietnam
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- Wilmar Investment Holdings
- ASAPP Information Group - India
- Star Paper Mills Limited - India
- Kepco SPC Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Grasim Industreis Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- Antam Resourcindo - Indonesia
- European Bulk Services B.V. - Netherlands
- Gujarat Sidhee Cement - India
- Sakthi Sugars Limited - India
- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Cement Manufacturers Association - India
- Rashtriya Ispat Nigam Limited - India
- Parry Sugars Refinery, India
- Therma Luzon, Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Kumho Petrochemical, South Korea
- Semirara Mining Corp, Philippines
- Goldman Sachs - Singapore
- Coal and Oil Company - UAE
- Port Waratah Coal Services - Australia
- Orica Australia Pty. Ltd.
- Sindya Power Generating Company Private Ltd
- Neyveli Lignite Corporation Ltd, - India
- Anglo American - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Formosa Plastics Group - Taiwan
- Sree Jayajothi Cements Limited - India
- Vedanta Resources Plc - India
- McConnell Dowell - Australia
- Siam City Cement - Thailand
- Georgia Ports Authority, United States
- Thiess Contractors Indonesia
- Australian Commodity Traders Exchange
- Economic Council, Georgia
- London Commodity Brokers - England
- Cigading International Bulk Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SMG Consultants - Indonesia
- Savvy Resources Ltd - HongKong
- Independent Power Producers Association of India
- Indonesian Coal Mining Association
- IHS Mccloskey Coal Group - USA
- PowerSource Philippines DevCo
- Lanco Infratech Ltd - India
- Price Waterhouse Coopers - Russia
- Larsen & Toubro Limited - India
- Global Green Power PLC Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Global Business Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Tamil Nadu electricity Board
- South Luzon Thermal Energy Corporation
- GMR Energy Limited - India
- Barasentosa Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- CIMB Investment Bank - Malaysia
- International Coal Ventures Pvt Ltd - India
- Bhushan Steel Limited - India
- Indika Energy - Indonesia
- Sical Logistics Limited - India
- Bhatia International Limited - India
- CNBM International Corporation - China
- Eastern Coal Council - USA
- Gujarat Mineral Development Corp Ltd - India
- PTC India Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Marubeni Corporation - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- Globalindo Alam Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- Intertek Mineral Services - Indonesia
- Parliament of New Zealand
- GVK Power & Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- Central Electricity Authority - India
- Mjunction Services Limited - India
- Borneo Indobara - Indonesia
- Ministry of Finance - Indonesia
- Indian Oil Corporation Limited
- Alfred C Toepfer International GmbH - Germany
- Samtan Co., Ltd - South Korea
- Bayan Resources Tbk. - Indonesia
- Uttam Galva Steels Limited - India
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- Straits Asia Resources Limited - Singapore
- Wood Mackenzie - Singapore
- Indo Tambangraya Megah - Indonesia
- Electricity Authority, New Zealand
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