The global 0.50% sulphur cap on marine fuel comes into force from January 1, 2020, leaving the storage sector with big questions on how to handle the future regulations.
Vitol executive committee member Chris Bake told Reuters that the big question facing the oil storage sector is how world handles new International Maritime Organisation rules for cleaner shipping.
“It’s going to be more and more difficult to burn that fuel oil with more economies going to natural gas for power,” he said
“(Lower sulphur) marine gasoil has to build ahead of 2020. At the same time fuel oil will have to build because there is lack of demand but it’s difficult to figure out when that inflection point is,” Chris was quoted as saying.
He added that the industry has missed the opportunity to install scrubbers to reduce sulphur content of fuel on board vessels on a wide scale.
For more information, visit www.imo.org
5th Mar 2018