VLSFO

Australian Heavy Sweet Crude Premium Dips from Record High

  • Demand for the oil used in fuel oil blending has slowed, causing spot premium for Australian Van Gogh crude oil for loading in October drop this week.
  • Australian producer Santos sold a 300,000-barrel cargo of the heavy, low-sulphur, or sweet, grade for loading on Oct. 3-7 to Japanese trader Mitsui & Co at $8 a barrel.
  • A September-loading Van Gogh crude cargo was traded at a premium of more than $12 a barrel, the highest premium recorded for the grade.
  • Van Gogh Crude are called heavy sweet as...

http://mfame.guru/australian-heavy-sweet-crude-premium-dips-from-record-high/

HSFO or VLSFO ? Fuel Testing to Deal With IMO 2020

Freepoint Commodities Singapore says it will start supplying very low-sulfur fuel oil (VLSFO) in the fourth quarter in the world’s largest bunkering port when ships start testing a fuel that will meet global standards going into effect from 2020, reports Reuters.

Pertamina for oil blending

The U.S. commodities trading company is also upgrading a terminal owned by Indonesian state energy firm Pertamina where traders can blend oil into VLSFO and supply the fuel to neighboring Singapore, Ouyang...

http://mfame.guru/hsfo-or-vlsfo-fuel-testing-to-deal-with-imo-2020/

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/

IMO 2020 Starts To Jolt Oil Market

  • Price of low-sulfur, heavier oils that refineries make and then reprocess into transport fuels like gasoline and diesel has jumped in Europe.
  • Market is paying a higher premium for low-sulfur material than it did before because people are looking to stockpile low-sulfur bunker fuel.
  • Historical link with prices for the finished fuels is now being disrupted by the need to produce cleaner marine fuels.
  • Around 35 million barrels of 0.5% fuel already in storage, there’s potential for roughly the...

http://mfame.guru/imo-2020-starts-to-jolt-oil-market/

International Maritime Organization Standards Puts a Hike in Diesel Prices

  • International Maritime Organization (IMO) 2020 standard states that marine fuels containing no more than 0.5% sulfur by weight are to be used to power ocean-going vessels and for ships without exhaust scrubbers, resulting in a sizeable price jump as ocean shippers and fuel sellers begin stocking up.
  • IHS’ forecast also expects the spot price of global crude benchmark Brent to reach an average above $67 a barrel between June and the end of this year.
  • Analysts forecast demand for IMO...

http://mfame.guru/international-maritime-organization-standards-puts-a-hike-in-diesel-prices/

Asia Refiners Venture into Export of IMO Compliant Fuel

  • Taiwan and South Korean refiners are venturing into newer markets to export low-sulphur ship fuel.
  • Refiners have redirected low-sulphur feedstocks for making VLSFO, with 0.5% or less sulphur content due to less demand for gasoline.
  • Fuel oil is initially refined and sulphur is removed through a residue desulphurization process. The feedstock through a residue fluid catalytic cracker to make gasoline and sold as VLSFO.
  • Gasoline prices are still higher than $600 a ton versus VLSFO at $500-$520...

http://mfame.guru/asia-refiners-venture-into-export-of-imo-compliant-fuel/

IMO2020 Grade Fuel Launched by Austrian Company

  • Vienna-listed oil and gas company OMV has developed a very low sulfur fuel oil (VLSFO) with 0.5% sulfur content.
  • VLSFO is in line with the marine fuel standard, ISO 8217:2017, and produced in collaboration with the world’s leading designer and manufacturer of low and medium-speed engines.
  • VLSFO will be produced in Schwechat and Petrobrazi refineries and will be made available to customers in the ports of Venice and Trieste in the northern Adriatic as well as the port of Constanta in Romania.

http://mfame.guru/imo2020-grade-fuel-launched-by-austrian-company/

Current Futures Prices and Refiner Processing Options

Shipping industry is preparing for tougher sulphur emission rule IMO 2020 implementation in just six months. Shipowners will likely start purchasing IMO 2020-compliant marine fuel for vessels without onboard scrubbers in the next three months. 

An article published in Ship & Bunker provides an update on futures prices in Rotterdam, Singapore, and the U.S. for IMO 2020-related commodities. Assessment of refiners’ options to optimize individual refineries and refining networks are also provided.

Cur...

http://mfame.guru/current-futures-prices-and-refiner-processing-options/

Technical Review of Safety Implications of 2020 Compliant Fuels

The recently concluded (Maritime Environment Protection Committee) MEPC 74 meeting held in London last month for the prevention and control of marine pollution from ships, has set a guideline report for possible safety implications relating to fuel oils, meeting the 0.50% m/m sulphur limit. Here’s a detailed insight on the same as made public by IMO.

Identified potential safety implications

The potential safety implications identified are listed below, but are not limited to, the following:

  1. sta...

http://mfame.guru/technical-review-of-safety-implications-of-2020-compliant-fuels/

Cepsa Aims to Produce up to 2.5 Million Tonnes Low-Sulphur Fuel Oil

According to an article published by Reuters, Spanish refinery Cepsa aims to produce 2.2 million-2.5 million tonnes per year of shipping fuel.

IMO complaint fuel

The new fuel will be compliant with new IMO rules capping sulphur emissions, the head of marine fuels for Cepsa Trading.

Cepsa has so far not secured any buyers for the new very low sulphur fuel oil (VLSFO), Carlos Giner Monleon told the Platts European Bunker Fuel Conference in Amsterdam.

Fuel tested by prospective buyers

Monleon said some...

http://mfame.guru/cepsa-aims-to-produce-up-to-2-5-million-tonnes-low-sulphur-fuel-oil/

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