New Jersey-based international blending advisory company Refinery Automation Institute, LLC. (RAI) in early April published a research paper focusing on the nonlinearity of bunker component properties and its solutions.
The paper IMO 2020 and the importance of nonlinear blending properties calculation was written by Eliseo Curcio, the Vice President and CFO at RAI.
“This might seem like an easy concept, but the majority of blenders and shipowners calculate bunker blend component properties linearly,” he said.
“This is a large mistake, one that overestimates or underestimates valuable or safety-related properties (i.e., viscosity, flashpoint, pour point, etc.) and can result in significant financial losses.”
Curcio explained bunker fuel oil and hydrocarbon based components do not “attract” each other, and chemical interactions modify the behaviour of the solution or blend when components are mixed together.
He showed examples of differences between results of linear and nonlinear calculated bunker blends, and validated the accuracy of nonlinear calculations with data from a fuel testing laboratory.
“The IMO 2020 sulfur bunker regulations make it economically vital to consider the difference between linear and nonlinear property calculation results, and their potential impact on profit or loss,” concludes Curcio.
“A terminal or refinery that produces 100,000 tpd of bunker fuel shows a difference of $44 MM/yr in profit just by considering the nonlinearity of the blend property calculation.
“The economic benefit is not the only advantage of using the nonlinear correlation. As previously mentioned, using the wrong calculations for properties like flashpoint, pour point and compatibility can significantly impact the quality of the final bunker product, as well as the safety of operations.
“Blenders and terminal operators should sell compliant VLSFO that meets all specifications and is both stable and compatible.”
The complete paper IMO 2020 and the importance of nonlinear blending properties calculation is available for viewing at this link.
Related: ISO 8217 standard not realistic for 0.5%S VLSFO, says bunker blending veteran
Photo credit: Refinery Automation Institute
Published: 8 April, 2020
Development will take place when SK Energy’s 130,000 bpd capacity VRDS unit start operations from April 2020.
Document to help SRS vessels operate safely and prevent pollution during installation and operation of scrubbers.
‘Singapore has requested such information from Malaysia in order to assess its implications for Singapore.’
Solution allows charterers to continuously monitor fuel consumption, carbon and sulphur emissions of their chartered vessels in real-time via an online dashboard.
Proposed private placement is expected to raise gross proceeds of up to approximately $3.43 million, says UOB Kay Hian Securities.
Buyers should target fuels with recent certificates of quality; certificates for fuel taken from floating storage could be as old as 2-3 months, it advised.
The COVID-19 pandemic continues to evolve and MPA is working closely with other agencies to monitor the situation, both globally and in Singapore, the port authority tells Manifold Times.
Caroline Yang, President of SSA, addresses issues earlier raised by players; including PMC No. 04, the seven-day restriction, contactless bunkering, sampling point, hose connection, and more.
IBIA Asia, ABIS, sources from Singapore’s bunkering and surveying companies, and an industry veteran share with Manifold Times the issues expected from MPA’s latest Covid-19 measures.
The top three positive movers in the 2020 bunker supplier list are Hong Lam Fuels Pte Ltd (+13); Chevron Singapore Pte Ltd (+12); and SK Energy International (+8), according to MPA list.
‘We will operate in the Singapore bunkering market from the Tokyo, with support from local staff at Sumitomo Corporation Singapore,’ source tells Manifold Times.
Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.
