As Reuters reports, Royal Dutch Shell loaded its first cargo of low sulphur fuel oil (LSFO) from its Pulau Bukom refining site in Singapore, on September 19. According to the oil major, it is the first time the company has produced LSFO from its own upstream crude.
In May, Shell launched a new two-stroke engine cylinder oil specifically for use with engines running on VLSFO. Shell has already conducted 19 successful trials of the 0.5% sulphur fuel with shipowners at key ports globally and will be performing more trials in New Orleans, Rotterdam, and Singapore.
Specifically, cargo will be blended to a finished product, which will then supply bunker customers, assisting its customers to better-prepare for the implementation of the IMO 2020 sulphur cap.
The company has produced fuel product offers including very low-sulphur fuel oil (VLSFO) supply in selected bunkering ports, high-sulphur fuel oil (HSFO) supply for ships with on-board scrubbers and liquefied natural gas (LNG).
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In light of the approaching 2020 sulphur cap, shippers will have to change to low sulphur fuel oil or marine gasoil or install scrubbers, to protect the environment and reduce shipping emissions.
Refineries around Asia such as Japan’s Cosmo Oil, Taiwan’s Formosa Petrochemical and South Korean refineries have started producing and selling VLSFO grades.
