Tankers: floating storage. File image/Pixabay.
Floating storage may well come to the aid of smaller ports when it comes to supplying ships with IMO2020-compliant bunker fuel, an oil industry executive has said.
With the coming change to the make up of bunker fuel -- ships must use 0.5% sulfur fuel from the start of next year or have scrubbing equipment installed -- uncertainty over new demand patterns could lead to a lack of compliant fuel in some ports.
Holding oil in very large crude carriers is an established oil industry practice which typically is used to make the most of arbitrage opportunities.
"We will see some floating storage of high sulphur or low sulphur for a period of time until the land-based infrastructure establishes some kind of equilibrium that's in tune with what grades of fuel are called for in particular locations," BP's global head of marine fuels, Eddie Gauci, was quoted as saying by Reuters.
Gauci was speaking at the Fujairah Bunkering and Fuel Oil Forum in the United Arab Emirates.