Asia/Pacific News
South Korean Suppliers to Start 0.10% Sulfur Bunker Supply Mid-November
South Korean suppliers are slated to begin offering 0.10 percent low sulfur fuel oil (LSFO) supply beginning mid-November, reports Platts.
SK Energy will take the lead in offering LSFO, with S-Oil, Hyundai Oilbank and GS Caltex following in December, according to unnamed sources.
The country's refiners are expected to produce between 20,000-30,000 mt of 0.10 percent LFSO ahead of Emission Control Area (ECA) regulations, which come into effect January 1, 2015.
The new rules will mean that marine fuel used in ECAs will have sulfur content limited to 0.10 percent by weight.
So far, South Korea is the only North Asian country with plans to offer 0.10 percent LSFO, with one Hong Kong supplier having said that they are waiting to see the level of demand and Japanese sources having said that it would be too expensive to produce in the country.
In mainland China, Sinopec in Shanghai is the only refiner said to be able to offer the fuel.
Critics have been quick to cast doubt over supply of low-sulfur fuel options, which have so far seemed inadequate in the face of the expected sharp rise in demand beginning 2015.
When similar 1.0 percent sulfur regulations were introduced in 2010, huge price differentials were seen between 3.0% high sulfur fuel oil (HSFO) and 1.0% LSFO as the industry struggled to cope with limited supply.
