« Insights & News

KPI Bridge Oil selling more 2020-ready fuels than HSFO

CEO predicts 'frequent and significant price swings' prior to equilibrium.

Søren Høll, Group CEO at KPI Bridge Oil. Image credit: KPI Bridge Oil

Updated on 25 Nov 2019 10:33 GMT

KPI Bridge Oil reports that it is now, for the first time, selling more 2020-compliant fuels than high-sulphur fuel oils.

Discussing bunker sales over the last few months, CEO Søren Høll explained that the company began fixing 0.5 percent sulphur contracts at the beginning of the second quarter, and that demand has gradually risen since then as buyers have looked to secure the availability of IMO-compliant fuels prior to the January 2020 implementation date.

Høll noted that the company is seeing "significant price and availability fluctuations in most ports around the world" in the run up to 2020.

A price differential of 30-40 percent between compliant and non-compliant fuels has been previously forecast by KPI Bridge Oil, and this is supported by latest Bunker Index data which shows that the BIX World IFO 380 was 35 percent below the BIX World VLSFO 0.5 on November 22.

Høll suggests that an upward drive on prices would appear to be materialising, adding: "Until the market settles at a new equilibrium and the supply side has fully completed the transition, we'll see frequent and significant price swings depending on location and availability."


Discussing the company's preparations ahead of 2020, Høll pointed out that KPI Bridge Oil has secured access to a new revolving credit facility and undertaken a comprehensive internal review of its business model to prepare its systems, operations and team members for the new regulations.

"Apart from advising on anything from local availability, port differentials, and route planning to how to prepare tank inspections, barge preparations, performing compatibility tests and risk assessments, we also established a management level global function which operates across functions and our 11 offices to specifically support individual customers and add extra value on 2020-related matters at this crucial time. Pooling together information, resources and technical expertise from specialists across our entities we aim to preempt some of the expected challenges currently faced by our business partners," Høll remarked.

GAC in Tacoma tie-up with Puget LNG

Cooperation to supply LNG from Tacoma terminal to GAC's customers in the Pacific Northwest.

Samskip extends commitment to biofuel bunkers

Shipowner reveals plan to use biofuel on more of its vessels in 2021.

Monjasa posts profit and volume rise in 2020

Annual report shows positive financials despite disruption to global maritime trade flows.

Gasum starts biogas delivery trials to Finnish Border Guard

Product sourced from biogas plant in Turku, Finland, and liquefaction facility in Risavika, Norway.

World's first hydrogen cargo vessel set for Paris launch

Plan to have newbuild running on hydrogen by the end of 2021.

Bunker One launches St. Croix supply operation

Company claims it is now the leading independent bunker supplier in the Caribbean.

Monjasa lauds new time-saving Panama bunker service

'Pioneering' tanker operation off Cristobal is said to reduce idle time by 24 to 48 hours.

Gasum secures LNG supply licence in France

New licence enables firm to extend its delivery options to customers.

Sea Oil acquires Pro Fuels' bunker business in Norway

Former Pro Fuels team become employees of new firm Sea Oil Petroleum AS.

Titan LNG charters bunker vessel Green Zeebrugge

Supplier bolsters LNG delivery capacity in north-west Europe.