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?

Product Markets Service

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.

Product Markets Service

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Media enquiries
If you would like to interview one of our experts, please get in touch with Ann.Lee@woodmac.com +65 6518 0823 or Anthea.Pitt@woodmac.com +44 203 060 0624.

 


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