IMO2020: Another Tanker Owner Opts for Scrubbers, Eyes Competitive Advantage

Tuesday August 14, 2018

UAE-based Gulf Navigation Holding (PJSC) (GULFNAV) today became the latest tanker owner to announce it was opting for scrubbers as part of its IMO 2020 compliance strategy.

It joins the likes of DHT Holdings, Inc. (DHT), Navig8, and Frontline in backing the technology, and like its peers is eyeing a competitive advantage from the move.

GULFNAV's fleet upgrades will also include other "state-of-the-art technologies" such as ballast water management systems (BWMS).

"This will help our vessels comply with IMO's standards and give us an advantage to get new contracts in established markets such as the European Union and North America. Many companies are expected to withdraw from these markets because they will not afford the expenses to comply with the new technical specifications," said GULFNAV Managing Director and Group CEO, H.E. Khamis Juma Buamim, in comments alongside the company's latest Q2 report.

Retrofit work commenced during the last quarter, with two petrochemical tankers already entered into dry dock for their mandatory five-year maintenance.

"We have also installed new advanced engine fans that reduce fuel consumption by 5%. Taking this step now helps us avoid having to use higher-priced, less-available low-sulphur fuels and thus risking higher operating costs and the possibility of our vessels to stop and not generate revenues while waiting for fuel," Buamim added.

The company said it also believes the move will allow it to win more business from customers that "will look for environmentally-friendly ships."

GULFNAV currently lists six chemical tankers in its fleet.