- Equinor offloaded a rare cargo of VLSFO from Norway to Fujairah.
- The cargo consisted of VLSFO with 0.472% sulphur and the oil has a viscosity of 160-centistoke and 0.933 density.
- The shipment is for traders stock up on VLSFO supplies at major bunkering hubs to meet an expected surge in demand next year.
According to an article published in Reuters, Equinor offloaded a rare cargo of very low-sulphur fuel oil (VLSFO) from Norway last week at UAE’s Fujairah bunkering hub.
Adhering to strict demand
The offloading has been carried out to meet expected demand from stricter ship fuel emission rules, according to trade sources and shipping data.
The 130,000-tonne cargo has been sold to Saudi Arabia’s Aramco Trading Corp (ATC), said five fuel oil trade sources who declined to be identified due to company policies.
Equinor said it did not comment on specific cargoes. ATC did not respond to a Reuters request for comment.
Rare shipment to meet unexpected demands
New rules from the International Maritime Organization (IMO) take effect from January 1, capping the sulphur content of shipping fuel at 0.5% from 3.5% now unless vessels use exhaust-cleaning scrubbers.
The rare shipment is one of the new trade flows for the residue fuel as traders stock up on VLSFO supplies at major bunkering hubs to meet an expected surge in demand next year.
“This is the first VLSFO parcel we’ve seen from Mongstad (to Fujairah),” said Ranjith Raja, head of oil research at Refinitiv for the Middle East and North Africa.
Suezmax tanker Cap Diamant loaded on Oct. 10 the VLSFO cargo at Mongstad port where Equinor’s refinery is located and the ship discharged its cargo at Fujairah last week, shipping data on Refinitiv Eikon showed.
The tanker was chartered by Equinor, according to a shipping report.
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Source: Reuters
