EMEA News
Call for Russian Ban on Straight-Run Fuel Oil Bunkers
A Russian energy company is calling for the nation to ban the use of straight-run fuel oil as bunker fuel and a shift to the production of cracked oil product that can be used instead, according to a statement by GroupTranzit DV Co. Ltd. (GroupTranzit) published on Russian industry news site PortNews IAA.
GroupTranzit writes that a bunker hub, including a liquefied natural gas (LNG) bunkering centre, being developed in port Slavyanka in the Far East will facilitate the creation of a cracked oil market.
A modernisation program for the nation's refineries would allow straight-run bunker fuel to be processed in Russia, allowing for more profitable exporting.
"One of the tasks of the bunker hub is to arrange a cracked oil sales market in Russia, having ensured a steady demand of bunker fuel," wrote GroupTranzit, the parent firm of Vostokbunker, which is involved in the bunkering center development, according to its website.
"It is profitable for both Russia and foreign customers."
The company says the bunker hub will also allow for the creation of an international LNG bunker centre.
In addition, the company plans to buy several ice class tankers to ship heavy fuel oil from refineries in western Russia to the Far East.
A Reuters analysis this summer found that Russian tax incentives support the continuing operation of old refineries that produce large amounts of low-grade product for export.
