Marine Link
Monday, November 20, 2017

Fuel Oil News

S.Korean Refiners Look to Cash in on 2020 Mandate

File Image (CREDIT: AdobeStock / (c) Sharrif Che'Lah)

Three refiners to spend more than $5 bln to upgrade or add units. South Korean refiners are planning to spend over $5 billion on plant upgrades in response to tighter rules on shipping fuel, boosting production of low-sulphur fuel oil as well as other high-end products. The refiners hope the investment, which comes ahead of the 2020 introduction of the new rules, will make them one of the biggest beneficiaries of the new regulations, with many competitors still waiting to commit to new spending. "Not many refiners are doing so.

Technology Cooperation for Low-Carbon Shipping

Photo: International Maritime Organization (IMO)

The Global MTTC Network (GMN) maritime technology project, run by International Maritime Organization (IMO) and funded by the European Union, was presented during a side-event (10 November) at the UN climate change conference in Bonn, Germany (COP 23). The project established a network of five regional Maritime Technology Cooperation Centres (MTCCs). Representatives of the European Union, IMO, MTCC-Caribbean and MTCC-Pacific participated at the event. MTCCs updated the audience on their pilot projects, including data collection on fuel oil consumption on ships.

New Passenger Ferry for Seychelles’ Inter Island Express

Photo: Incat Crowther

A new 30-meter aluminum passenger ferry Isle of la Digue built by Richardson Devine Marine is the latest vessel designed by Incat Crowther for the Seychelles operator Inter Island Express. The catamaran newbuild, which required a very shallow draft to afford access to the operator’s confined harbor berth, is the first to feature Incat Crowther’s new generation propeller tunnel to reduce propeller draft and offer a flat transom which can integrate with standard fixed or active interceptor systems, the designer said.

Inside the World's First LNG Containership Conversion

Wes Amelie is now driven by a 7,800 kW MAN 8L51/60DF main engine. (Photo: Wessels Reederei)

The world’s first container feeder vessel refit to use natural gas was commissioned in late August in Bremerhaven, ushering in a new era in the use of alternative fuels across the global maritime sector. The container vessel Wes Amelie, owned by Wessels Reederei, Haren/Ems, was converted for the use of methane as a standard fuel at the German Dry Docks Shipyard in Bremerhaven, making it the world’s first of its kind vessel which consumes environmentally friendly methane. This conversion is more than simply another environmentally advanced ship…

World First: LNG to Fuel Largest Containerships

(Source: ©DonWilson / CMA CGM)

The move to LNG as fuel in the maritime sector picks up steam, as CMA CGM announced plans to outfit nine of its new 22,000 TEU containerships with LNG fueled engines. A trend that started in the United States is spreading to the world, as global containershipping giant CMA CGM announced its intention to outfit its series of new 22,000 TEU containerships with LNG-fueled engines. The move to ‘clean fuel’ in the maritime sector has been rapid, spurred by new rules from the International…

Ships 'Unseaworthy' If They Don't Meet Emissions Rules -IMO

Photo: International Maritime Organization (IMO)

Ships which do not meet cuts to the amount of sulphur they can burn in their engines risk being declared "unseaworthy", the International Maritime Organization (IMO) said on Thursday. Shippers and refiner are not sure how they will comply with rules finalized last year which require ships worldwide to cut sulphur emissions from 3.5 to 0.5 percent by 2020. The IMO said there would be no delays or exceptions to the coming rules, whether or not the industry takes the steps it needs to comply, and warned that all parties face consequences if they do not play their part.

IMO Updates COP23 on Climate Change Work

Photo: International Maritime Organization (IMO)

​The progress made in starting to shape a draft comprehensive International Maritime Organization (IMO) strategy on reduction of GHG emissions from ships has been reported to the COP 23 climate change conference, meeting in Bonn, Germany (6-15 November) by IMO’s Stefan Micallef. He reported that more than 2,600 ocean-going ships have now been certified to the mandatory energy efficiency design requirements, which have been in force since 2013. The significant global reduction…

Type Approval for Uprated MAN L51/60DF

The assembled participants at the MAN L51/60DF TAT in Augsburg with (front) Thomas Kremser, Head of Engine Test, MAN Diesel & Turbo, Augsburg (Photo: MAN Diesel & Turbo)

MAN Diesel & Turbo said its dual-fuel MAN L51/60DF engine has passed its Type Approval Test (TAT), which ran from October 17 to 20 at the company’s Augsburg works in Germany, in front of the industry’s main classification societies. The nine-cylinder test engine has an output of 1,150 kW/cylinder at a nominal speed of 500/514 rpm. The MAN L51/60DF engine can be employed both as marine main-engine and auxiliary engine. Augsburg’s testbed no. 20 hosted the test program of a nine-cylinder version of the engine that ran on fuel oil (DMA) and natural gas.

Cleaner Maritime Air for North America Comes Soon

Image credit EPA

On the operative day the sulfur content of the fuel oil used on board ships operating within the ECA may not exceed 1.00 percent m/m (10,000 ppm). The boundaries of the North American ECA are defined in IMO MEPC.1/Circ.723 . The US EPA has issued Interim Guidance on the Non-Availability of Compliant Fuel Oil for the North American ECA and more information is also available on the US EPA website.

USCG Marine Safety Alert

The U.S. Coast Guard issued a marine safety alert today to remind vessel owners and operators to establish effective fuel oil changeover procedures during efforts to comply with MARPOL Annex VI emission regulations. The USCG said that several recent incidents of fuel leakages during changeovers prompted the alert. The USCG cited multiple unspecified incidents involving substantial machinery space fuel leakages that occurred while vessels were switching fuel oil to ultra low sulfur (ULS) fuel oil to ensure compliance with MARPOL Annex VI, Regulation 14.3.4. The new regulations, which came into effect on January 1, lowered maximum fuel sulfur content from 1.0% to .10%.

Mercuria, PetroChina Selling Offshore Stored Fuel Oil

File Image: CREDIT BMT

Three to four tankers storing fuel oil, down from eight or nine. Independent trading house Mercuria and Chinese state oil giant PetroChina are selling fuel oil stored in vessels off Singapore and southern Malaysia on strong demand from the shipping and power sector, several trade sources said on Friday. The number of vessels storing fuel oil has halved from a month ago as Mercuria and PetroChina may have resold cargoes purchased over March to May, the sources said. Geneva-based…

Heavy Fuel Oil Test Plan

The Environmental Protection Agency (EPA) posted on the Internet its Heavy Fuel Oil Test Plan and Robust Summary. As noted in this lengthy document, heavy fuel oil is a principal fuel in marine applications. It is a diverse group of substances encompassing hydrocarbons with a wide range of molecular weights. Existing aquatic toxicity data show heavy fuel oil related refinery streams to have moderate to no aquatic toxicity depending upon species and test substance. (HK Law).

USCG Alert: Compliance with MARPOL Requirements

The Coast Guard has confirmed several reports it has received stating that main engines may not attain the expected speed when using ultra low sulfur fuel oil. The Coast Guard has revised its list of recommendations to vessel owners and operators about the importance of establishing effective fuel oil changeover procedures to comply with MARPOL Annex VI emission regulations. Ensure fuel oil switching is accomplished outside of busy traffic lanes and the ECA. Generally the ECA is 200 nm from the North American Coast and 50 miles from the U.S. Caribbean coast (e.g., the Commonwealth of Puerto Rico and the U.S. Anticipate that there may be many technical challenges for operators when beginning to use ULS fuel oil as a matter of routine and compliance.

Petroperu Seeks to Sell Fuel Oil Cargo

State-run Petroperu is offering to sell a 220,000 barrel cargo of fuel oil for delivery at Talara port on September 6 to 10, according to a tender document seen by Reuters on Tuesday. The oil company in July sold a similar cargo of fuel oil that will be loaded this week. It has also been actively buying crude and fuel cargoes on the open market in recent months. For this tender, the company is offering to deliver fuel oil with maximum 1.4 percent sulfur or heavy fuel oil with up to 1.5 percent sulfur. The product must be exported from Peru.

Singapore's Record Fuel Stocks Move to Floating Storage

Record high stocks of fuel oil in Singapore are pushing traders to store the shipping and feedstock fuel into tankers temporarily as demand slows regionally. At least seven very large crude carriers (VLCCs) have been provisionally fixed to store fuel oil on short-term time charters, traders and shipbrokers said. Lower oil prices have boosted refinery profits over most of this year, in turn driving refiners to maximise run rates and increase the supply of fuel oil in the region, traders said. Traders are also taking advantage of cheaper freight rates and a steep contango where prices of cargoes loading in the current month are cheaper than those loading in forward months.

Iranian Fuel Oil Exports Trade Skirts Sanctions

Iran is sidestepping Western sanctions and managing to sell hundreds of thousands of tonnes of fuel oil every month through companies based in the U.S.-allied United Arab Emirates, trading sources told Reuters. The U.S. and EU sanctions that came into force in 2012 prohibit the import, purchase and transport of Iranian petroleum products to pressure Tehran to halt its disputed nuclear programme. Washington has also pressed its allies around the world to clamp down on the shipping of Iranian oil products. But Tehran has been using innovative methods to circumvent the restrictions, several Middle East-based trading sources said. They include tankers switching off their tracking systems…

North P&I Publishes 3rd Edition Of Bunker Claims Prevention Guide

The ‘A’ rated, 150 million GT North of England P&I club has published a third edition of its popular loss-prevention guide ‘Bunker Claims Prevention’, which aims to help shipowners avoid potentially large losses arising from loading unsuitable or insufficient marine fuel oil. The new edition reflects recent changes to international marine fuel specifications introduced in ISO 8217:2010. Head of loss prevention Tony Baker says, ‘The guide tackles bunker quality and quantity issues…

Eastern Shipbuilding Group Launches ATB

Eastern Shipbuilding Group, Inc. was scheduled to launch an ABS Classed 150 x 46 x 27-ft. ATB Ocean Going Tug at its Allanton facility in on  February 15. is being constructed for U.S. Shipping Partners, L.P. of along with two sister ships. is the first of three ABS-Classed 150-ft. ATB tugs currently under construction at Eastern’s Allanton facility. The vessel is designed and engineered by Guarino & Cox of , and is classed under the ABS rules for Building and Classing Steel Vessels Under 295 ft. in length. This series of 150-ft. ATB tugs offers several unique design features including an articulated tug and barge (ATB) connection system provided by Intercon. The vessel is capable of being powered by both heavy fuel oil as well as # 2 marine diesel fuel oil.

China to Implement Emission Control Measures

The Chinese Ministry of Transport has announced that from April 1, 2016, vessels ‘at berth’ at the core ports in the Yangtze River Delta (YRD) emission control area (ECA) must use fuel oil containing 0.5 percent sulphur or less. These core ports are Shanghai, Ningbo-Zhoushan, Suzhou and Nantong. Ships entering the ECA are encouraged to use fuel oil containing 0.5 percent sulphur or less. Ships ‘at berth’ at ports in the ECA must use fuel oil containing 0.1 percent sulphur or less. The exact details of how the measures will be implemented (i.e., enforcement, penalties, the definition of ‘at berth’, and requirements for fuel change-over, verification of fuel quality, records and documentation) are not yet available.

Tighter Supertanker Market Impacts Asian Fuel Supplies

The window to sell Western fuel oil to Asia is starting to close as demand for a limited fleet of supertankers to store cheap crude pushes freight rates to multi-month highs, shipping and trade sources said. Crude prices have fallen nearly 60 percent since June and, with prices a year ahead already quoted about $10 a barrel dearer than now, crude traders have hired up to 20 supertankers to store oil with a view to turning a big profit later. That also adds to the cost of selling fuel oil to Asia. The region has taken in high volumes of fuel oil from Europe and the Mediterranean this month, but with the cost of chartering a supertanker rising to highs not seen in at least a year, it is an increasingly less profitable trade.

Low Sulfer Fuel Demand Set to Rise

New international rules – set to enter force in May 2005 – which require ships to burn fuel oil with a maximum sulfur content of 4.5 percent by May next year, and down to 1.5 a year later in certain world regions, will significantly boost the demand for low sulfur fuels, according to wire reports. The measures are set to increase shippers' demand for low sulfur fuel oil, while supplies may be insufficient to meet the anticipated pick-up in buying interest. Front month forward paper prices for fuel oil with a low 1.5 percent sulfur content were at about $168.50 a ton on Tuesday, just $2 above 3.5 percent high sulfur fuel oil prices. The premium widens to $7 a ton for fourth-quarter paper, and to $10 by the third quarter of 2005.

Dutch Police Investigate Illegal Bunker Fuel Blending

"During three days, we checked whether 30 vessels had the correct documentation. In 12 cases, documents were forged, or the environmental law was violated," Hans Tuinder, head of the Criminal Investigation department for the Marine Police, told Xinhua. Over 22,000 vessels are bunkered in the Netherlands annually, taking in around 13 million tonnes of fuel in total. The port of Rotterdam is a major trading location, the source of around 88 percent of all bunker fuel. A study conducted by the scientific institute CE Delft last year showed some ocean-going vessels were bunkered by fuel oil contaminated with hazardous waste materials. Fuel oil "naturally" contains a variety of hazardous substances in high concentrations.

Record Trading in Singapore's Bunkers Market

Photo: Singapore Ministry of Transport

Over $750 million worth of fuel oil traded 1st week of June. Trading frenzy leads to record price swing. Major commodity houses are betting against each other on the direction of fuel oil in Singapore, the world's largest market for shipping fuel, in a clash that has led to a record price swing and is set to smash monthly trading levels. More than $750 million of physical cargoes have been traded in the first week of June during an end-of-day pricing window, accounting for about 60 percent of Singapore's average monthly sales of the fuel and creating logistics challenges at the port.

Maritime Reporter Magazine Cover Nov 2017 - The Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News