EMEA News
Quadrise MSAR Emulsion Fuel Little Impacted By Falling Oil Prices
The recent plunge in crude oil will have little effect on Quadrise Fuels International Plc's Marine MSAR fuel business, though the company is experiencing a short delay in the production of its synthetic low-cost heavy fuel oil alternative, Quadrise announced.
Executive Chairman Ian Williams said that though the collapsing price of oil was a shock to the sector, the spread between refined oil product prices meant that the impact on the company was not as large.
"The Company is privileged to be dealing with major clients who have experience of these economic cycles and hold a longer term outlook for their businesses," he added.
Quadrise had originally announced a deal to buy two MSAR manufacturing units from ENH Engineering A/S to ensure availability of the fuel in the first quarter of 2015.
However, the delay means production will start in the first quarter instead, with MSAR to be available by the second quarter in order to obtain a Letter Of No Objection (LONO) from engine manufacturers.
The company's project to use MSAR fuel in Saudi Arabia's thermal power generation sector will also see a small delay, though will still commence in 2015 towards the end of the year.
"Whilst the delay is regrettable, a number of refineries are keen to engage with Quadrise and Maersk as the commercial drivers for MSAR are advantageous," said the company.
Quadrise announced last year that MSAR's sea trials, which were completed earlier this year, would be done in conjunction with A.P.Møller-Mærsk aboard Wärtsilä engines.
