Americas News
IMO2020: Maersk Expands 0.50% Bunker Production, Supply Offering to US East Coast
A.P. Moller - Maersk today has announced a deal with PBF Logistics LP (PBF) to produce and supply 0.50% sulfur bunkers on the U.S. East Coast.
Under the deal, PBF will process Maersk crude at its CPI Operations LLC terminal facility in New Jersey, with Maersk Oil Trading (MOT) then selling the IMO 2020 compliant bunkers to customers.
Annual production is intended to be around 1.25 million metric tonnes (mt), the equivalent of approximately 10% of A.P. Moller - Maersk's annual fuel demand.
Maersk is well known for having taken an early stance on using compliant fuel, rather than scrubbers, for IMO2020 compliance.
"This processing agreement forms a cornerstone in Maersk's fuel sourcing strategy for the IMO 2020 sulphur cap," says Niels Henrik Lindegaard, Head of Maersk Oil Trading.
"The vast majority of our fleet will comply with the regulation through use of compliant low sulfur fuels. With the capability to produce and store compliant low sulfur fuel on the U.S. East Coast we take control of the fuel supply in a key maritime hub for us. We will continue our drive to ensure compliance in all geographies come 2020."
CPI was acquired by PBF last year, and its operations include crude processing and storage located on the Delaware River south of Philadelphia, Pennsylvania.
"We will repurpose a portion of the existing idled asphalt facility to process an average of approximately 25 thousand barrels per day of crude for Maersk as part of their overall IMO fuel sourcing strategy," PBF Logistics Executive Vice President, Matt Lucey, explained.
The deal adds to Maersk's 0.5% supply and storage moves made last year in Rotterdam and Singapore, and is another sign of Maersk Oil Trading's emerging status as one of the world's biggest physical bunker suppliers.
Ream More: Is Maersk Oil Trading Emerging as One of the World's Biggest Physical Bunker Suppliers?
