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News / 2020/ Argus Media: Klesch to produce 0.5pc sulphur marine fuel at Heide

Argus Media: Klesch to produce 0.5pc sulphur marine fuel at Heide

06 Aug 2019
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Global energy and commodity price reporting agency Argus Media on Monday (5 August) provided a IMO 2020 marine fuels industry related update:

German refiner Klesch will produce a 0.5pc sulphur marine fuel at its 100,000 b/d Heide refinery, north of Hamburg.

The fuel, which will allow for compliance with the International Maritime Organisation (IMO) 2020 global marine-fuel sulphur cap, has performed well in independent tests for compatibility and stability, Klesch said.

The refiner already produces low-sulphur blending components for 3.5pc sulphur fuel oil — the current maximum permitted sulphur content of marine fuels. A refinery spokeswoman said it will be possible for Heide to produce the low-sulphur blending components and the 0.5pc sulphur marine fuel needed once the IMO rule takes effect on 1 January 2020, although future production levels will depend on how the marine fuel market develops.

The 0.5pc sulphur marine fuel will be an expansion of the refinery's products portfolio, the spokeswoman said. Heide is already configured to process heavy sour crude, which would imply it may not alter its crude slate for the production of the new fuel. No timetable was given for when production and marketing of the 0.5pc sulphur marine fuel would begin, nor was there detail available on from where it will be marketed.

Heide underwent a partial shutdown in April 2018, during which modifications for IMO 2020 were made while the hydrocracker and vacuum unit underwent maintenance. The refinery entered a partial planned maintenance shutdownof two of its units today. The units will remain shut until early-October, although Klesch anticipates no supply disruptions.

Source: Argus Media
Published: 6 August, 2019


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