Russia: Energy ministry shares IMO 2020 fuel supply preparations

Pavel Sorokin, the Deputy Minister of Energy of the Russian Federation, shared at the 12th international Transport of Russia conference on the country’s preparations for IMO 2020.

“Russian manufacturers will cope with it. The measures that that government is taking to stimulate and accelerate the transition from heavy fuel oil to low-sulphur fuel, are already bringing effect. There is a potential, and the risks are minimal,” he said, as quoted by Sea News.

Sorokin noted the Russian marine fuels industry supplying approximately 13 million metric tonnes (mt) of bunkers, with heavy fuel oil (HFO) taking up about 10 million mt.
However, he forecast a two-fold decline in HFO consumption by 2021.

“As a result, the cost of low-sulphur fuel will grow considerably. How to administer this, is yet to be decided. Time will show,” he said.

To help the transition from HFO to low sulphur marine fuel, the Ministry of energy will offer refinery companies special privileges to produce low sulphur fuels, adds Sorokin.
“We will offer a small premium for every ton of low-sulphur fuel in the Baltic and in the Far East basin,” he said.

Published: 26 November, 2018