EMEA News
IBIA CONVENTION: Consultancy Sees Med ECA Adding 20% to Global MGO Demand
The introduction of a 0.1% sulfur emissions control area to the Mediterranean next year can be expected to add about 20% to global MGO demand, according to consultancy 2050 Marine Energy.
From next year ships in the Mediterranean will either need to use maximum 0.1% sulfur fuels -- down from 0.50% at the moment -- or use a scrubber, with the grace period for compliance coming to an end on May 1.
The firm expects the new ECA to add 20.2% to global MGO demand and cut 3.1% from global fuel oil bunker demand, Adrian Tolson, owner of 2050 Marine Energy, said at the IBIA Annual Convention 2024 in Athens on Wednesday.
Within the Mediterranean, Tolson sees VLSFO shifting from a 55% share of demand this year to 21% in 2026, HSFO climbing from 26% to 30%, ULSFO from 1% to 9%, MGO from 17% to 35% and LNG and other fuels from 2% to 4%.
"The increase in MGO demand will exceed Med refining capacity, generating need for additional storage -- the West Med is short on storage -- for increased imports," Tolson said.
"This means higher relative prices."
