Asia/Pacific News
IMO 2020 Regs Will Swing China's Bunker Demand "Very Close" to Singapore: Woodmac
The upcoming global 0.50% sulfur cap on marine fuel could help put Chinese bunker demand almost on par with that of Singapore, according to Wood Mackenzie.
The new "IMO 2020" regs come into force from January 1, 2020, with the vast majority of vessels expected to switch to distillate or other 0.50% sulfur fuels for compliance.
In addition, from 2019 China's emission control areas (ECAs) will cover its entire coastline, but as they only extend 12 nautical miles (nm) the impact on bunker demand is expected to be minimal.
"By generating this demand, the Chinese government is not only creating a bunkering industry but also providing a solution for its refining industry's diesel surplus," Reuters quoted Wood Mackenzie consultant Yujiao Lei as saying.
"Additional marine fuel demand in China to meet IMO regulations will also put the country very close to Singapore in terms of total marine fuel demand.
"We expect 90,000 barrels per day (around 5 million tonnes) of bunker demand to shift from Singapore to China in 2020 for international shipping."
Singapore is currently by far the world's biggest bunkering port by volume, with sales last year of over 50 million mt.
