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?
What does it mean for producers?
Michael Wojciechowski, VP Refining and Oil Markets Research, discusses what impacts and opportunities crude producers face as they move toward 2020.
What does it mean for shippers?
Iain Mowat, Senior Research Analyst, Refining and Chemicals, looks at the impending compliance and cost issues facing shippers.
What does it mean for refiners?
Alan Gelder, VP Refining, Chemicals & Oil Markets explores how refiners can benefit from this legislation, as well as their potential hurdles.