IMO 2020: Are Asian refiners ready?

Ahead of the S&P Global Platts Asia Pacific Petroleum Conference (APPEC 2019), Insight presents a series of articles exploring aspects of the global trade in crude oil and refined products. Here, Kang Wu and JY Lim of S&P Global Platts Analytics analyze the challenges and opportunities facing Asian refiners ahead of the International Maritime Organization’s switch to a lower sulfur fuel standard. The refining industry is on the brink of a major shift in the demand structure of bunker fuels, and refiners are making plans to meet changing product demand brought about by the IMO 2020 deadline. The initial effect will be to create a huge disposition issue for some 3 million barrels per day (b/d) of high sulfur fuel oil (HSFO), globally. That volume will need be replaced by low sulfur fuel oil (LSFO), marine gasoil (MGO) and various low sulfur blends of gasoil and residuals, with some volumes absorbed by the power sector with the expected drop of HSFO prices. In order to make those changes, relatively expensive steps are required throughout the refining industry to rebalance products. S&P Global Platts Analytics forecasts that the spec change will have a widespread effect on price spreads of refined products… continue reading

Continue reading IMO 2020: Are Asian refiners ready?. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply