The supply overhang of high-sulphur fuel oil (HSFO) will be a more serious issue post-2020 than potential shortages of compliant bunker fuel, according to some senior industry executives.
According to the IMO’s regulations, vessels will need to run on 0.5%-sulphur fuel, LNG or be installed with scrubbers to continue consumption of HSFO with sulphur limits at 3.5% from 2020.
While predicting challenges for both refiners and shipowners in meeting the regulatory requirements, Glencore’s chief executive in oil and gas Alex Beard said eventually output of compliant distillates should be sufficient to meet demand.
