VLSFO: output up. File image/Pixabay.
The Chiba refinery in Japan will produce very low sulfur fuel oil for the marine market.
The 190,000 barrels a day plant has started to process high sulfur residue through its upgraded residue desulpuriser.
Consequently, high sulfur output will fall by about 540,000 metric tonnes a year while very low sulfurproduct will rise by around 450,000 mt, according to price reporting agency Argus Media.
According to the report, the take up of emissions abatement equipment, or scrubbers, by Japanese shipowners amounts to no more that a tenth of the fleet leading to weaker demand for high sulfur product.