Japan’s Cosmo Oil has decided to hedge its 2020 compliance by fitting half of its operated VLCC fleet with scrubbers whilst running the other half on marine gas oil (MGO)
The decision, announced in Tokyo this week, reflects the huge uncertainty in the market over whether to burn expensive MGO or pay out up to $5m, in the case of a VLCC, to fit a scrubber in the hope that heavy fuel oil will still be available and at a lower price than MGO.
