FUELLING CHALLENGES POST 2020 - Middle East Update Digital Ship VPO Forum : Singapore 2018 - Digital Ship Events
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
FUELLING CHALLENGES POST 2020
Digital Ship VPO Forum : Singapore 2018
Chris Turner : Manager Bunker Quality & Claims
Middle East Update
…
Fuelling challenges post 2020
• Options for Compliant Fuel in 2020
• Background & Availabilities
• Supply chain and Onboard issues
• Claims outlook
2
…
449 Days to go !
Be in no doubt the Global Cap WILL HAPPEN!
3
…
2020 : Background
“This is truly a Global Cap”
• Industry is used to step change - but not this big a step!
• All Fuelling Options involve significant challenges for buyers and end users alike.
• Buying Process far more complex than present – underestimate at your peril.
• Non Compliance is likely but may be tempered by carriage ban
Distillate HSFO with ECGS
MGO/MDO 3.5% Sulphur
VLSFO 0.5% IGNORE IT
Do Nothing
4
…
2020 : Considerations
May be limited
Options
Commercial
?
Technical
Will be a challenge
5
…
2020 Availability of Fuel : Distillate
• Don’t take it for granted that the
fuel you want will be available?
• What Grade ? DMA, DMB, Other?
• Variances in length of distillate
across regions
• Freight will be a significant
component on pricing
• Compliant solutions may come at a
$ premium
• Supply infrastructure limitations
• Dry locations?
• Distillate quality less problematic
than HFO....?
Source : WOO 2017
6
…
2020 Availability of Fuel : VLSFO
• Inconceivable to expect that HFO 0.5%
blending will NOT occur
• Targeted blending based on Sulphur
• Blending will be significant and possibly
extreme centered around hub ports but
will bring Quality problems
• Example Fujairah > 85% 0.1% based on
current Sulphur levels result in 0.88
kg/ltr / 5.5 cSt fuels
• Further away from hubs less likely to
have blended VLSFO 0.5%
• Reliability and consistency of supply
Source VPS Bunker Master
7
…
2020 : Availability of Fuel HFO 3.5%S
• HFO will be available – but where ?
• Refinery Conversion & Desulphurisation continues
• Older less profitable refineries continue to be closed
• Vessels/Owners with EGCS should look to plan and consider avails
• Supplier may not store on the “off chance of supply”
8…
2020 : Buying and Sourcing Conundrum ?
Requirement
•CP & Legislative Requirements
•Cheapest ?
•Where and when?
•How much ?
•Quality! (for now)
Avails & Options
•Quantities / Grades / Specifications (Will avails align with CP Requirements)
•RMG Quality.. Consider RMK?
•VLSFO 0.5 % Quality Variance
•Blend constraints to meet 0.5% !Price $!
•Distillate Quality Variance
•Vessel Capacities and ROBs
•Port and Supplier limitations ?
•Dry Locations ?
9…
2020 : VLSFO?
NO YES
10…
2020 : Challenges onboard : Preparation
In practice a general fuelling decision to be taken in advance of 1st Jan 2020 i.e. MGO..
1% of HSFO in VLSFO (@0.50%) would result in Sulphur of 0.53% Sulphur
Blending / Cleaning risks flocculating Asphaltenes
Don’t forget settling and service tanks!
Sediments and unpumpable build up
Consider MDO (DMB) , excellent solvent properties, more aromaticity and priced better than MGO
11…
2020 : Challenges onboard : Distillate
More MGO/MDO stored longer than ever before over longer and longer distances
Cold Flow – Quality must be known and considered.
Microbial Contamination - Removal of water bottoms, monitor/treat
Aged Fuels : Oxidation forming gums
AGO - Flash Point –cannot easily be blended away onboard if a problem occurs
Biodiesel in AGO, Fatty Acids formation – Corrosion.
12…
2020 : Challenges onboard : VLSFO 0.5%
•Housekeeping : Instability when mixed, perform compatibility testing
•Fuels may become layered/stratified/non homogenous upon mixing onboard
•Quality Variances, Equipment set up i.e. Seperators, injection
• USGC a sign of things to come?
•Education and general apathy
•Lubrication Package – Wide range of viscosities and lubricating issues, different
blends will require different formulations although all Low BN.
13Claims Outlook
Where do we go from here ?
Legislation
Cross Government and International response needed ASAP
Define De-Minimis!
Define Acceptable limits of contaminants – The only port authority
who has attempted this is Rotterdam
Testing
Increase ASTM D7845 Scope to include contaminants implicated as
currently not fit for purpose
Develop industry standard method for contaminants
Define detection limits
TSP generally considered not fit for purpose
Specifications
Must as soon as possible incorporate testing that is fit for purpose
for the problems identified now and expected post 2020
New Standard Clause 5 wording does not provide adequate
protection to customer
14…
2020 : Conclusions….Well actually a plea!
• Don’t underestimate challenges to the Industry, the supply chain and end user
• Plan don’t react
• Accept change is coming
• Educate staff and crew
• Adapt and Embrace the change
• Lobby for change
• It’s a whole new ball game!
1516
You can also read
