KUALA LUMPUR (Reuters) – Vitol, the world’s largest independent oil trader, has started building a small oil refinery at its storage terminal in Malaysia that will provide low-sulphur fuel for ships, a senior company official said on Monday. The project consists of a crude distillation unit that can process 30,000 barrels per day of crude and is located on the same site as Vitol’s oil storage terminal at Tanjung Bin in the southern Malaysian state of Johor, Vitol Asia’s President and Chief Executive Officer Kho Hui Meng said. A construction unit under China National Petroleum Corp (CNPC) is handling the project which will involve moving a second-hand CDU from China to the site, he said on the sidelines of the Asia Oil & Gas Conference. The project is expected to be completed in May 2020 and will augment Vitol’s refinery in Fujairah in the United Arab Emirates in providing low-sulphur fuel oil for ships, Kho said. The global shipping industry will switch to marine fuel, known as bunker fuel, containing 0.5% sulphur or less from the start of 2020, down from the current 3.5%, as mandated by the International Maritime Organization. Companies such as Germany’s Uniper and the United Arab… continue reading
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