One of Ocean Tankers' VLCCs. Image Credit: Ocean Tankers
Singapore-based Ocean Tankers has begun its transition to using VLSFO ahead of the upcoming global 0.50% sulfur cap on marine fuel.
"We have been training the operators in proper bunker management and segregation, preventive maintenance, as well as to ensure that heating temperature is in accordance with engine maker's specifications," Ocean Tankers told Reuters in an emailed statement.
"We do have concerns which is why we're now in a trial period where our own fleet is starting to burn LSFO."
Those initial tests include the use of IMO2020 grade bunkers on VLCC Pu Tuo San.
With a fleet of 82 tankers and 51 support vessels, Ocean Tankers says it will make a fleet-wide shift to VLSFO in Q4 of this year.
While spot pricing for the IMO2020 grade fuel remains unclear as there is currently very little demand for the new fuels, Ship & Bunker sources have indicated at present that VLSFO is being offered in Singapore at a discount to MGO of around $30/mt, or $125/mt over HSFO.
The new 0.50% sulfur rule comes into force from January 1 next year.
Ocean tankers is part of the Hin Leong group, which also includes Ocean Bunkering Services (PTE) Ltd - Singapore's biggest bunker supplier by volume for 2018 - and Universal Terminal - Asia Pacific's largest independent oil storage terminal.