EMEA News
MGO Shortage Likely Next Year, Says Supplier
A shortage of marine gas oil (MGO) is likely next year when new sulfur emissions rules take effect in Emissions Control Areas (ECAs), UK MGO supplier The Geos Group said in an emailed statement.
"Our customers are becoming increasingly aware of a likely shortage of low-sulphur marine gas oil from the beginning of next year", said Geos Group Managing Director Barry Newton.
"But having our own physical supply of this grade of fuel in several locations around the UK enables us to offer them a robust supply source."
The company said many in the shipping industry expect big oil refineries to produce more of the 1000 parts per million (ppm) MGO that allows vessels to comply with the rules, but it warns that this is unlikely because of the complexity involved in changing a refinery's product mix.
Other options, including blending ultra low sulfur fuel oil with 1000 ppm MGO at the refineries or importing more MGO are possible but involve their own expenses and logistical difficulties.
Vessel operators could opt to use 10ppl fuel in ECAs, but those fuels have a minimum allowable flashpoint of 55°C, lower than the minimum of 60°C permitted for vessels at sea.
Geos Group, which sells 1000ppm MGO at Aberdeen, Thames, Hysham, Peterhead, and Lerwick, is in the process of building new storage capacity at the Port of Blyth.
