ExxonMobil: 0.5% Global Sulfur Cap Will Reshape the Marine Fuels Landscape

ExxonMobil says it expects LNG bunkers to supplement, rather than replace, the current fuels line-up.

With the impending 0.50 percent global sulfur cap, which will come into force in either 2020 or 2025 pending an IMO decision later this month, the industry is at the onset of "a period of substantial market change" that will "reshape the marine fuels landscape and is likely to boost demand for LNG and compliant low-sulphur fuel options," ExxonMobil said today. 

As part of the shake up, and as predicted in its "The Outlook for Energy: A View to 2040" forecast, the energy major expects liquefied natural gas (LNG) bunkers to supplement, rather than replace, the current fuels line-up.

The outlook came as ExxonMobil Monday commented on its collaboration with Pavilion Energy Pte Ltd (Pavilion), with the two companies looking to develop solutions for liquefied natural gas (LNG) bunkering and other downstream developments in Singapore. 

As Ship & Bunker previously reported, Pavilion CEO Seah Moon Ming first announced the collaboration at the CWC World LNG summit in Singapore last month.

Under the partnership, ExxonMobil will support Pavilion Energy in establishing LNG bunkering procedures starting with truck to ship deliveries, as well as the safety and operational standards for LNG bunkering in Singapore.

The cooperation also supports the LNG bunkering initiative of the Maritime Port Authority of Singapore (MPA), ExxonMobil noted.

"The collaboration with Pavilion Energy combines both companies' expertise, and is one of the steps we are taking toward establishing ExxonMobil's global LNG bunkering offer," said Nancy Carlson, vice president of aviation and marine at ExxonMobil Fuels and Lubricants.

"Our 40-year heritage in LNG and marine insights, alongside Pavilion Energy's dedicated approach, can help us to meet our vessel operators' growing demand for integrated marine fuel solutions. ExxonMobil is committed to ensuring that we continue to meet our customers' requirements."

Pavilion was launched in 2013 by Government of Singapore owned investment firm Temasek Holdings to invest in the LNG industry.