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BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
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ExxonMobil warns of rise in compatibility and stability issues as new 0.5% fuels emerge

11 Oct 2017 14:45 GMT

Supplier urges operators to 'avoid the pitfalls' as the market heads towards a 'multi-fuel future'.



A marine industry survey conducted by ExxonMobil finds that the route to compliance with the International Maritime Organization's (IMO) 0.5% global sulphur cap in 2020 is unclear for many vessel operators.

According to ExxonMobil, results of the survey highlight an ongoing sense of confusion and lack of preparedness, with 70 percent of respondents saying that they do not believe the industry is ready for the deadline.

The makeup of the marine fuel mix in 2020 and beyond is a clear area of concern, with wide-ranging views from the industry on how the landscape will evolve.

In the survey, 32 percent predict that a combination of heavy fuel oil, marine gas oil and fuels and blends will be used, while 69 percent believe the cap will lead to the development of new low-sulphur fuels.

"At ExxonMobil we expect that new 0.5% fuel formulations will emerge, based on low sulphur refinery streams, in addition to novel fuel blends," said Iain White, Global Marine Marketing Manager at ExxonMobil. "As a result, it's likely we will see increased compatibility and stability problems, which will make purchasing fuels from a trusted supplier more important than ever."

The cost implications of the cap were also highlighted as a potential challenge; with 53 percent of respondents predicting a rise in fuel spend.

When asked about the uptake of liquefied natural gas (LNG), 31 percent of respondents believe there will be a growth in its adoption as a marine fuel. These findings align with ExxonMobil's 2017 Outlook for Energy: A View to 2040, which predicts that by 2040 global LNG consumption will rise to more than two-and-a-half times the 2015 level.

Of the people surveyed, 45 percent of respondents predict an increased investment in abatement technologies (scrubbers). However, only 11 percent said they were actively looking to install a scrubber before 2020, with 40 percent citing a lack of economic clarity as a reason for forgoing investment.

"The results of this survey show that that we are heading to a multi-fuel future and that there is not one obvious fuel solution that will apply to all vessels," said White. "To avoid the pitfalls that may lie ahead, it's vital that operators work closely with trusted fuel suppliers to ensure that they select the best route to compliance for their vessel's needs."




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