The port of Fujairah is set to receive a new 360,000 cbm fuel oil storage and treatment facility in readiness for the International Maritime Organisation’s (IMO) 0.5% cap on sulphur content in bunker fuels.

Dubai-based Earth Wealth Energy announced the plans ahead of the IMO’s cut from 3.5% to 3% from January 1, 2020. It plans to build 12-15 storage tanks and a facility to treat up to 12,000 bpd of fuel oil to reduce the sulphur content.

Earth Wealth Energy has contracted Singapore-based Rotary Engineering to carry out the engineering study and aims to make a final investment decision and start work this year. The storage facility is expected to be ready by the end of 2019 or latest by the second quarter of 2020.

The planned reduction of the global sulphur limit is expected to prompt demand for bulk storage of liquids. Several companies have planned to invest in new storage facilities ahead of IMO’s 0.5% global sulphur cap for marine fuels.

Under the new global cap, ships will have to use fuel oil on board with a sulphur content of no more than 0.50% m/m (mass by mass), against the current limit of 3.5%, which has been in effect since 1 January 2012.

Meanwhile, IMO has commissioned and published studies on the feasibility and use of LNG as a fuel for shipping. The publication includes a feasibility study on the use of LNG as a fuel for international shipping in the North America ECA, a pilot study on the use of LNG as a fuel for a high speed passenger ship from the Port of Spain ferry terminal in Trinidad and Tobago and a feasibility study on LNG-fuelled short sea and coastal shipping in the wider Caribbean region.

The major parameters effecting the use of LNG as fuel include the cost of installation and equipment, LNG infrastructure development, and regulatory regimes. For more information, the report can be read here:

The environmental benefits of using LNG as fuel are significant. Compared to the use of diesel fuel, use of LNG will reduce the NOx emission by approximately 90% on a lean burn gas fuelled engine, and the SOx and particle matters emissions are negligible without the need on any abatement technologies.

The CO2 emissions are about 20% lower compared to diesel fuel because of the lower carbon content. However, the overall effect on GHG (Green House Gas) emissions needs further study.

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9th Apr 2018

9th April 2018