0.50%S supply in Japan from October. File Image / Pixabay
Japan's Cosmo oil will start production and supply of 0.50%S IMO 2020 compliant bunkers in October, trade source have told Platts.
Initial supply is expected to meet demand from domestic routes before making its way into the international market for ocean-going vessels.
With the global 0.50% sulfur cap on marine fuel set to come into force from January 1, 2020, currently there is virtually no spot demand for such products beyond vessels operating in certain emissions control area (ECA) zones in China where such limits have already been implemented.
Vessels are expected to begin making the transition to IMO 2020 fuels at some time during H2 of this year.