Asia/Pacific News
IMO2020: Australian Refinery Starts Up LSFO Production
Australia's Viva Energy is now producing IMO2020 grade fuel oil at its Geelong refinery in southern Australia.
The compliant fuel is currently being tested with customers, the company has said.
Marine fuel used in Australian waters is current 3.5% sulfur bar restrictions in some ports. From the start of next year, the sulfur cap on bunker fuel for global shipping falls to 0.5%.
Viva general manager Thys Heyns said fuel costs would rise with the price largely determined by the global market.
The rise comes "because there's more processing and higher value components go into it", Heyns was quoted as saying by Australian news provider ABC.
"But it's really unclear how much that'll be," he added.
Market observers put the premium of IMO2020 compliant fuel oil over high sulfur fuel oil at around $200 per metric tonne or higher.
