• Follow Us On Our Preferred Social Media Platform:
News / 2020/ Argus: Euronav loads more LSFO on floating storage for IMO 2020

Argus: Euronav loads more LSFO on floating storage for IMO 2020

18 Jun 2019
news image

Global energy and commodity price reporting agency Argus Media in on Monday (17 June) provided a marine fuels industry related update:

Belgium-based shipowner Euronav has nearly filled up its ultra large crude carrier (ULCC) in the Mediterranean with low-sulphur fuel oil as part of its strategy to blend and store marine fuels compliant with the International Maritime Organisation's (IMO) 2020 sulphur cap.

Euronav purchased at least seven 30,000t cargoes from different suppliers since March to store onto the tanker Oceania, according to vessel tracking firm Vortexa.

The firm bought cargoes from refiners such as Italy's Iplom and Saras, Nigeria's Sahara and Israel's ORL.

Euronav bid at a $35/t premium to high-sulphur Rotterdam fuel oil barges last week, implying an outright price of $379.75/t on 14 June for its latest low-sulphur oil cargo, according to sources. The deal could not be confirmed with Euronav.

Euronav will use these marine fuels for its own fleet's consumption in 2020, the company said. But market participants said it will need to blend some of the products as some of the cargoes purchased are above the 0.5pc sulphur limit. The tanker has several segregated tanks to store the product.

Euronav's fleet of two ULCCs, 43 very large Crude Carriers (VLCC), 25 Suezmax tankers and two Floating Storage and Offloading (FSO) units consume around 1mn t of marine fuel per year.

Demand for 0.5pc fuel oil started to emerge in Europe recently, as companies started storing the product in preparation for next year.

Prices of 0.5pc sulphur fuels are set to pick up towards next year with demand. The Argus calculated assessment of 0.5pc Rotterdam barges reached $512/t on 14 June.

The shipping sector currently uses high-sulphur fuel oil with a maximum sulphur content of 3.5pc. But under the new IMO regulation, ships must limit sulphur emissions in exhaust fumes to 0.5pc. Shipowners will either have to burn new 0.5pc marine fuels, use marine gasoil (MGO) or run LNG to comply with the cap. They can also fit ships with exhaust scrubbers to continue to burn high-sulphur fuel oil.

Source: Argus Media
Published: 18 June, 2019

 

Our Industry Partners

RSS Fields