Global energy and commodity price reporting agency Argus Media on Wednesday (31 July) provided a marine fuels industry related update:
Turkey's largest bunker fuel supplier Petrol Ofisi said it is nearly ready to supply fuel oil compliant with the International Maritime Organisation (IMO) regulations that take effect in 2020.
The company, a subsidiary of trading firm Vitol, has added a new 2,500t barge to its fleet for IMO-compliant 0.5pc sulphur fuel oil supply and has completed 90pc of preparations for 2020, its head of marine sales Celal Ersan said.
Petrol Ofisi will supply 0.5pc fuel oil in Istanbul in 2020, Ersan told Argus. Turkey's bunker suppliers will rely on imports for supply in 2020, as local refiners Tupras and Azerbaijan state-controlled Socar will not produce IMO-compliant fuels next year. Marine gasoil (MGO) will become the main marine fuel in Turkey's ports in 2020, according to market participants.
Petrol Ofisi became the largest supplier in Turkey in 2019, after Arkas lost some market share when term contracts ended. Petrol Ofisi can supply up to 700,000t of marine fuels in Turkey's transit and domestic market, the company said. Last week it supplied 5,000t of high-sulphur bunker grade fuel oil to container firm Hapag Lloyd's Express in Istanbul, its largest single delivery. The company has a term contract with Hapag Lloyd, Ersan said.
Argus assessed delivered high-sulphur bunker fuel oil price in Istanbul at $407.75/t yesterday, a $36.25/t premium to Rotterdam, the largest bunkering hub in Europe. Marine fuel sales in Turkish ports — mostly in Istanbul — reached 3mn t last year. Istanbul is the second-largest bunkering hub in the Mediterranean, behind Gibraltar.
Source: Argus Media
Published: 1 August, 2019
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