What is IMO 2020?
The International Maritime Organisation has stated that as of the 1st of January 2020 all ships must reduce their sulphur emissions from 3.5% thresholds to 0.5%. The aim of this regulation is to reduce the emission of sulphur dioxide (which results in acid rain and environmental damage).
Implications for the oil market
The HSFO that is being targetted by IMO is consumed 4mb/day in shipping sector. The drop in HSFO will affect Refinery economics too.
IMO 2020 will mean ships can no longer simply burn untreated high sulphur fuel oil (HSFO). This leaves three options available to shippers:
- Install scrubbers (exhaust gas cleaner systems) HSFO is burned.
- Switch fuel intake to low sulphur fuel oil (which is equivalent to distillate).
- Switch to liquid natural gas (LNG) propulsion systems.
Disclaimer: This video is intended for informational purpose only. This may not be construed as a news item or advice of any sort. Please consult the experts in that field for the authenticity of the presentations.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!