Asia/Pacific News
Singapore: More MGO barges expected come 2020
Marine gasoil (MGO) barges in Singapore could outnumber fuel oil barges once the 0.5% sulfur cap on bunker fuel is in place, market sources have said.
Some bunker players would expect the ratio to move 2-to-1 in favour of MGO vessels.
"I'd be very surprised if anybody would bring in new fuel oil barges here [to Singapore]," a bunker supplier was quoted as saying by price-reporting agency Platts.
"Some of those who have modern barges will likely take them off fuel oil and flush out their tanks to do MGO eventually," the supplier added.
MGO stems tend to be small compared to fuel oil deliveries but this might change after January 2020 although switching to MGO deliveries would incur costs, estimated at around S$100,000 ($75,000).
"We will just re-calibrate the current fuel oil meters for MGO deliveries, and clean the fuel oil tanks to store distillates, shouldn't be a problem," another bunker supplier was quoted as saying.
According to Maritime and Port Authority figures, there 213 barges operating in Singapore of which 130 supply fuel oil, 71 MGO, 11 barges have a dual-fuel delivery facility while one delivers ultra-low sulfur fuel oil.
