Report: Japanese Refiner to Discontinue LSFO Supply

Thursday May 23, 2019

Japanese refiner Cosmo Oil will stop supplying 1% sulfur A-fuel in the "domestic rack and waterborne market from as early as September", according to price reporting agency S&P Global Platts.

Citing market participants, the report said that demand for separate tank storage in response to IMO2020 was the reason behind the move.

With the 0.5% sulfur fuel rule in place from the start of next year, the global bunker market is to fragment into a mult-fuel market with refiners having to make the necessary adjustment.

Until the change, the main bunker fuel grade has been at 3.5% sulfur content.

A-fuel oil is a blend of gasoil and fuel oil and is one of the key products supplied by Japanese refiners for use by industrial power plants and coastal vessels.