Galp Sets Out IMO2020 Stall

Monday June 10, 2019

VLSFO will be the fuel of choice because it will be the most competitive, a Galp executive has said.

Speaking at the Portuguese refiner's annual industry event in Lisbon last week, Goncalo Caeiro said that its 0.5% sulfur bunker fuel will be similar to "the fuel oil we have right now with some differences".

One of the key differences will be variation in the fuel oil's parameters such as the fuel's viscosity, which could range between 200-230 centistokes (cst).

Caeiro told the meeting this shouldn't be a problem.

"You will be able to have a specific viscosity [in the bunker fuel] but it will be more expensive," he said.

The International Maritime Organisation (IMO)-compliant fuel oil the company will be selling into the market will have vaccum residue (from vaccum gasoil conversion) and that all blending components used in producing the IMO2020-compliant bunker fuel will be produced inhouse, he said.

In addition to very low sulfur fuel oil (VLSFO), Galp will continue to make high sulfur fuel oil. Caeiro said that It has improved its fuel oil blending process which will allow it to produce high and low sulfur grades more efficiently.

Jose Carlos Roque, who heads up the bunker department at Galp, said that the company was looking to grow its share of the Atlantic/Mediterranean bunkers market.