BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News





85% of refiners do not have plan to cope with 2020 bunker regulation: survey

17 Jul 2017 13:08 GMT

Survey suggests refiners are unprepared to meet demand for low-sulphur marine fuel.



Only 15 percent of oil refiners know how they are going to cope with the 0.5 percent global cap on the sulphur content of marine fuel in 2020, a survey by KBC reveals.

In the survey, entitled 'The IMO's 2020 marine fuel sulphur cap and challenges for the global refining industry - time for action is now!', refiners across the US, Europe, the Former Soviet Union and South Africa were questioned about their attitudes to the upcoming regulation.

KBC states that the estimated industry cost to meet the new standard is $2 billion, with the study's findings suggesting there is still uncertainty around how to respond.

Stephen George, Chief Economist at KBC, explained: "While the shipping industry expects the refiners to meet their supply requirements, the refining industry is still waiting to know to what extent the shipping industry will install emission 'scrubbers' on board.

"This disconnect proves that now is the time for refiners to assess what choices are available and the decisions to be made for a strategic pathway forward," George noted.

"This is a wake-up call. Failure of refiners to study, agree and implement a robust strategy will leave many of the 'less complex' refineries severely economically disadvantaged.

"With refineries suffering in recent years from overcapacity and oversupply, the bunker fuel transition may prove a perfect time to implement new margin-boosting technology - although a one size fits all approach is not recommended.

"Implementing such technology for the reduction of other emissions and meeting other regulatory requirements at the same time may help to future-proof refineries while boosting margins and delivering the cleaner fuels that the shipping industry will continue to require. New refinery optimization strategies based on rigorous simulations, analytics and real-time data integration will assure continued compliance without sacrificing margin capture and subsequently protecting the price at the pump for consumers," concluded George.






Related Links:

Refiners may 'struggle to cope' with MGO demand in 2020
BIMCO voices 'serious concerns' over IMO sulphur cap study
'Extreme difficulty' for refiners to meet 2020 sulphur cap demand, says study
Distillate supplies could match demand for global ECA, says consultancy

Latest News:

Debmarine Namibia inks MoU to build bunker-saving mining vessel
Understanding 'about' in bunker consumption clauses
Viking Line ferry will be first to use dual-fuel version of world's most efficient four-stroke diesel engine
Market still indecisive as OPEC meeting closes in
Oil and fuel oil hedging market update
First LNG shipment arrives at future Lapland bunkering hub
VPS expands oil condition monitoring capabilities
Quadrise issues activity update following 'media speculation'
Oil and fuel oil hedging market update
Oil slightly up, but markets in wait-and-see mode ahead of OPEC meeting
Ceremonies held for MSC Cruises ships with scrubbers
VLCC with '20%' bunker savings delivered to K Line




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio
Rotterdam
Santos
Singapore
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events