IMO maritime fuel reg changes

Research by Woodmac, the Scotland-based consultancy group with an international reputation for supplying comprehensive data and advice across multi-markets, made some observations about the future of maritime fuel ahead of the International Maritime Organization’s (IMO) new fuel rules to heavily reduce the level of sulfur emissions from ships beginning Jan. 1, 2020. Woodmac is forecasting a rise in the use of equipment to clean up sulfur emissions before the new rules start; and that a little more than 10 percent of marine fuel will be scrubbed in 2020. The firm anticipates compliance with the new regs to be 85 percent in 2020, rising to full compliance in five years. The use of liquefied natural gas (LNG) in shipping will increase 70 percent in 2019-20, which will displace 100,000 barrels per day (bpd) of marine fuels in 2020. The firm also estimates availability of very low-sulphur fuel oil at 1.4M bpd in 2020 and 1.7M bpd in 2024. (Source: Marine Link 02/08/19) Note: WoodMac is an international energy, chemicals, renewables, metals and mining research and consultancy group. In 2015, WoodMac was bought by Verisk Analytics, a New Jersey-based data analytics and risk assessment firm, in a deal valued at $2.8B.