19 November 2012

What do marine fuel suppliers think?


One of the questions we have faced from customers for abatement equipment is whether high sulphur residual fuel oil will continue to be available after legislation comes into effect limiting the sulphur content of marine fuel. It is of course entirely sensible to ask, we are asking customers to invest in a technological solution for which the “payback” is the ability to consume the cheaper fuel, if it is not available the case is weakened. At Oceanox we have communicated with a number of suppliers on behalf of our customers and a consistent picture has emerged which indicates that marine fuel suppliers, and their refining colleagues, expect that high sulphur residue will continue to form a significant part of the demand for marine energy into the future. At Sibcon 2012, Mr Aaron Cobb, Director of Marine Fuels at ExxonMobil stated that the oil major expects the global marine energy demand to more than double by 2040. He also pointed out that "Significant investment in refinery capacity will be required if distillates become the most popular form [of compliance].That's why we think that scrubbing technology or abatement technology will progress." In a side interview with Bunkerworld, Mr Cobb said that "I think we are going to see scrubbers playing a key role which will enable the use of fuel oil," At the same conference, Malaysian shipping firm MISC Berhad revealed that it is testing scrubbers on two of its vessels in the first quarter of 2013. The company has identified a partner to provide the scrubbing system, the design as well as the vessels they will be tested on, Captain Rajalingam Subramaniam, vice president fleet management at MISC, told delegates. It has always been our view that compliance with emissions legislation cannot be shunted onto the refining industry and that the ship owning and operating community must “step up” and play a key role in how the market develops. By actively engaging with abatement technology, ship operators give themselves the best chance of complying in a way which delivers the best outcome both from an environmental and commercial perspective. -