Owners and suppliers waiting for each other to make first move
Delegates at the second day of the IBIA Convention in Dubai heard from a number of of speakers that that both owners and suppliers were holding off from preparing for, initially, the 0.1% sulphur limit in ECAs in 2015 and, subsequently, the 2020 or 2025 global cap, according to World Bunkering.
Henrik Zederkof, CEO of Dan Bunkering, said it was classic “chicken and and egg situation”. He also cautioned that the situation as the impending changes came in would be different from the experience of doing down to 1.0% in the ECAs. He said the big difference is that 1.0% residual fuel exists, 0.1% does not.
Ricardo Castillo, a consultant with Purvin & Gertz, said that there was uncertainty over what would happen in 2015 but there would be “plenty of distillate at a price”. He described how refineries were closing down in Europe and fuel oil might have to be transported between regions.
Jim Nicholson, vice president Asia for Argus Media, gave presentation on the LNG market. He said the LNG bunker market would develop slowly. He expected that by 2025 only 3% to 8% of LNG sales would be as bunkers. He said: “The LNG market are not excited by the prospect of bunker sales.”
IBIA board member Robin Meech, and managing director Marine & Energy, spoke on the theme: “Will there be sufficient lower sulphur fuel without scrubber and LNG?”. His short answer was: “No.” His longer conclusion was that there is a strong case to reassess the global cap.
Source: World Bunkering
