MGO

Predictions on New Fuel Prices After 2020

Various consultancy and statistical analyses organizations and some major shipping companies are making their predictions/projections on the pricing of the new 2020 fuels. Viswa Lab in its latest technical update briefs about the same.

Predictions may impact scrubber decisions

Argus media says that the differential between High Sulfur Fuel and Low & Ultra Low Sulfur Fuel, currently around $260‐$270/ MT is likely to go up to $470/MT. 

EuroNav which owns 72 vessels including several ULCCs, states...

http://mfame.guru/predictions-on-new-fuel-prices-after-2020/

Diesel Prices Witness a Marked Increase as IMO2020 Approaches

  • Fuel switching due to IMO 2020 will drive a large and sudden shift in demand for diesel in shipping.
  • Fitch predicts the move to MGO is due to the cost, compatibility and regulatory issues associated with conversion to low sulphur fuel oil blends and the installation of scrubbers.
  • Fitch’s report did not account for the price increases, but anticipates a “spike” in the general cost of diesel due to the maritime rules.

Diesel prices will could increase dramatically due to upcoming implementation...

http://mfame.guru/diesel-prices-witness-a-marked-increase-as-imo2020-approaches/

What Will Happen When IMO2020 Hits?

It’s all over but the shouting. That’s how John Kingston describes the oil market in his article published in the Freight Waves. 

It’s a perfect description of where the oil market stands – and by extension, the trucking and rail markets – as we await the introduction of IMO 2020 over the next few months.

Lot of Brain Power Analysing the Issue

We say “it’s all over but the shouting” because the market is at the point where the conferences have been held, various research agencies have produced...

http://mfame.guru/what-will-happen-when-imo2020-hits/

Argus Launches World’s First Listed Delivered Bunker Fuel Derivatives Contract

  • The CME-listed contract will be the world’s first listed delivered bunker fuel derivatives contract.
  • Argus plans to introduce CME-listed LSFO and MGO marine fuels future contracts once physical trade liquidity in the fuels ramps up as a result of the global sulphur cap.

Oil price reporting agency Argus is launching a Chicago Mercantile Exchange (CME) listed Singapore marine fuels future contract which caters primarily to suppliers and end-users of the fuel, reports Reuters.

Financially relevant...

http://mfame.guru/argus-launches-worlds-first-listed-delivered-bunker-fuel-derivatives-contract/

Singapore Can Now Storage More MGO

Singapore, to meet the upcoming IMO 2020 sulphur cap regulation, has better positioned itself by having a new larger storage capacity of clean marine fuels, reports Seatrade Maritime News.

The joint venture

Singapore’s Jurong Port and Germany’s Oiltanking officially opened JPTT, a joint venture project in the making since Phase 1 construction started in May 2017.

“We now have 252,000 cu m of tank storage under Phase 1 of the project occupying some 12 hectares at Jurong Port,” said Ooi Boon Hoe,...

http://mfame.guru/singapore-can-now-storage-more-mgo/

Wärtsilä’s Long Term Outlook on EGCS

  • Wärtsilä orderbook fully booked for the remainder of 2019, and had secured orders for delivery for dates as late as the second half of 2020.
  • Orderbook evenly split between newbuilds and retrofits, with a large proportion of orders for closed-loop and hybrid systems and the majority for open-loop scrubbers.
  • Around 3,000 scrubbers likely to be installed by the end of 2019, and a further 1,000 units on order.
  • Conversion of 40,000 vessels that are likely to be moving from HSFO to MGO or LSFO is...

http://mfame.guru/wartsilas-long-term-outlook-on-egcs/

Forced BOG: Key To Future LNG Market!

  • IMO has introduced global limitations on sulphur emissions by ships that have been set-forth by MARPOL on using high-sulphur fuel oil (HSFO).
  • Solutions include installation of scrubber systems to remove sulphur from the gas stream, switch to VLSFO, marine gasoil (MGO), or liquefied natural gas (LNG).
  • Limited desulphurization-refining capacity and logistical considerations, constrain the supply of VLSFO and MGO.
  • LNG is likely to grow at 3.0 percent a year from 2019 to 2035, well above the...

http://mfame.guru/forced-bog-key-to-future-lng-market/

Singapore’s court jails tanker chief officer to case involving stolen gas

A man linked to a case involving 340,000 tonnes of stolen gas oil worth more than $200 million – the largest ever in Singapore – has been jailed for two and a half years. Dang Van Hanh has been jailed after pleading guilty to have received 5,600 metric tonnes of marine gasoil (MGO) stolen from Shell’s Pulau Bukom refinery.

According to sources, Dang Van Hanh was working as the chief officer of a vessel known as the Prime Sun when it docked at Wharf 3 at Shell at Pulau Bukom to load gas oil on...

https://safety4sea.com/singapores-court-jails-tanker-chief-officer-to-case-involving-stolen-gas/

Impact of Sulphur Cap on Bunker Fuels

As the global maritime industry is sailing towards a new sulphur regulation imposed by the International Maritime Organisation (IMO), bunker fuels’ availability and compatibility remain a concern for shipowners and operators, reports Seanews.

Significantly lower sulphur content

With IMO 2020 sulphur regulation in place, the sulphur content provisions will be significantly lower than the present 3.50% limit.

It will require parties to turn to compliant fuels such as marine gas oil (MGO) with...

http://mfame.guru/impact-of-sulphur-cap-on-bunker-fuels/

High-Sulphur Fuel Oil Demand To Plunge 60% Next Year

  • HSFO demand to fall 60% and MGO demand to be more than double next year due to new regulations on shipping fuel.
  • Demand for HSFO will fall from 3.5 million barrels per day to 1.4 million bpd and demand for MGO will increase from 900,000 bpd to 2 million bpd.
  • VLSFO demand might reach 1 million bpd in 2020 and 1.8 million bpd by 2024, while MGO demand will peak in 2020 and decrease to 1.8 million bpd by 2024.
  • About 4,000 scrubbers will be installed by 2020, consuming around 680,000 bpd of fuel...

http://mfame.guru/high-sulphur-fuel-oil-demand-to-plunge-60-next-year/

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