World News
DNVPS: Thirty Percent of Low-Sulfur Bunkers in 2012 Were Off Spec
About 30 percent of low-sulfur bunker fuel tested in 2012 was off spec, with most of the problems found in Europe, Platts reports.
Rahul Choudhuri, Asia-Pacific regional manager for Det Norske Veritas Petroleum Services (DNVPS), told the Bunkering in Asia conference in Singapore that a variety of problems have become more common since the North American Emission Control Area (ECA) took effect last August, forcing suppliers to blend more components to meet the 1 percent sulfur cap.
DNVPS found about 11 cases where aluminum and silicon levels were too high, compared with seven in 2011, 16 cases of density problems, up from 13 in 2011, seven cases of sediment issues compared with five, and seven cases of excessive sodium, up from none.
Choudhuri said 70 percent of off-spec cases were in Europe and 14 percent were in the U.S.
As sulfur regulations tighten, he said the market appears to be heading towards the use of more distillate fuels, but that can create the potential for other problems including low viscosity, low lubricity, low flashpoint, high pour point, and high acid - some of which can cause significant problems for vessel equipment.
Choudhuri said about 17 percent of distillate fuels were off-spec in 2012.
DNVPS tests down shortly after the start of the North American ECA rules last year found that aluminum and silicon levels, which reflect the presence of potentially destructive cat fines, had risen as sulfur levels fell.
Hauk Larsen Wahl, DNVPS Regional Manager for North American operations, said earlier this month they have been surprised by the "big increase" in bunker alerts since the introduction of the North American ECA.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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