Ship owners will need to decide if they want to continue using high Sulphur fuel oil, in conjunction with exhaust gas cleaning scrubbers or switch to low Sulphur fuel options, including distillates and LNG fuel. Their decisions will cause a dramatic shift in the demand of marine fuels used globally and will have an immediate impact on global refining.
There are only 16 months between now and January 1, 2020 when the IMO 2020 Rule takes effect, too short of time to initiate a residual upgrading project, which may remain options for the long term. Without the opportunity to respond with an investment timed to be on stream in 2020, refiners and shippers will have to find immediate solutions to reduce their exposure to the marine HSFO market. Read the article>>