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BTJ 5-17 - Ready for another big change? How the 0.5% global sulphur cap will change the refining and bunker markets

Publication date: 2017-10-31

Tags: highlights

BTJ 5-17 - Ready for another big change? How the 0.5% global sulphur cap will change the refining and bunker markets

After much deliberation and consultancy work, the International Maritime Organization has finally decided that the global cap on the sulphur level in ship fuel will be set at 0.5%. 

The new limit will come into force on January 1st, 2020, replacing the current 3.5%.

Already, however, questions arise about the availability of compliant bunkers.

This does not pertain only to refineriy output, but also to how fuel traders, bunkering companies, and terminals worldwide will cope with the new norm.

In a parallel action, China decided to implement the 0.5% cap in 11 major ports, including Shenzhen and Shanghai, effective January 1st of this year. It will be interesting to see if other countries in the Pacific Rim follow suit.

Ready for another big change?, by Charles L. Daly, Chairman, Channoil Consulting

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BTJ 5-17 - Ready for another big change?

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