World News
BP Says 0.5% Sulfur Cap by 2020 Is Feasible, Urges IMO Confirmation
Oil major BP Wednesday said that a 2020 implementation date for new rules is feasible and urged the International Maritime Organization (IMO) to confirm a date for proposed rules concerning a global 0.5 percent sulfur content cap on bunker fuel.
Terence Yuen, President of BP Singapore, called on the IMO to clarify its plans at the SIBCON 2014 conference in Singapore.
Under revised IMO MARPOL VI regulations, the allowable maximum sulfur content of bunker fuel would be capped at 0.50 percent by 2020 or 2025, subject to a review in 2018.
He added that a 2020 implementation is feasible given the various compliance options available to the industry, including abatement technology, fuel compliance and LNG.
"The transition to 0.5 percent sulfur content limit is difficult due to its geographical reach and scale, but this challenge will not be diminished by a delay to 2025," Yuen said.
"The single most important issue now is for the IMO to confirm the implementation date as the delay is unlikely to change the economics of the available solutions," he continued.
He added that a firm date would increase certainty for suppliers who will need to make changes to meet demand.
Speaking at the same event, Marco Antonio Costa Tritto of Brazil's Petrobras said it is not ready to invest in increased production of LSFO to meet the higher expected demand.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 648.00 | 2.00 | 808.00 | 10.00 |
| Rotterdam | 613.50 | 4.50 | 792.00 | 21.50 |
| Houston | 646.00 | 3.00 | 851.00 | 13.50 |
| Fujairah | 647.50 | 1.50 | 900.00 | 0.50 |
| Global 20 Ports Average | 672.50 | 0.50 | 896.50 | 0.50 |
| Global 4 Ports Average | 638.50 | 2.00 | 838.00 | 4.00 |
| Global Average Bunker Price | 727.00 | 2.00 | 943.00 | 2.00 |
Popular Now More
-
Apr 16The firm will acquire majority ownership of the Spanish firm for an undisclosed sum, subject to closing conditions and regulatory approvals. -
Apr 15The Athens branch manager of global marine fuel supplier and trading firm Monjasa has stepped down from his role at the company. -
Apr 13A seizure of a ship by Iran would point to a significant widening of the threat to global shipping from current geopolitical tensions.