Smooth sailing or rough seas? IMO to cap sulphur in 2020


The International Maritime Organization (IMO) has set a 1 January 2020 date for implementing a significant cap on the sulphur content in fuel used by ships. Currently limited to 3.5% mass/mass (m/m), the new global limit in 2020 will be reduced to just 0.5%.

This impending regulatory change on marine bunker fuel will impact what types of compliant fuel are consumed by the shipping sector, from ultra-low-sulphur fuel oil (ULSFO) and marine gas oil (MGO) to liquefied natural gas (LNG) and scrubbed high-sulphur fuel oil (HSFO).

Our experts in refining and oils look at the potential disruption in the market from different angles: How much uncertainty is there among crude differentials for producers? Will shippers see fuel costs rise? And will refiners ultimately benefit?

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What it means for producers
Michael Wojciechowski, VP Refining and Oil Markets Research, discusses what impacts and opportunities crude producers face as they move toward 2020:



What it means for shippers
Iain Mowat, Senior Research Analyst, Refining and Chemicals, looks at the impending compliance and cost issues facing shippers:



What it means for refiners
Alan Gelder, VP Refining, Chemicals & Oil Markets explores how refiners can benefit from this legislation, as well as their potential hurdles:



To download a free excerpt of our comprehensive study on how the IMO's sulphur regulations could affect your industry, please register your details below.

Product Markets Service: oil product markets explained
This study was developed with the use of our Product Markets Service, Wood Mackenzie’s comprehensive global analysis of oil product supply, demand and price.

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