IMO 2020 Regulations Boosted Bunker Fuel Sales by 14% in Q1 2020! Says Monjasa

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Danish bunker supplier Monjasa increased marine fuel sales by 14pc on the year in the first quarter, writes Erik Hoffmann in Argus Media.  This is mainly due to the introduction of the International Maritime Organisation’s (IMO) marine fuel sulphur cap on 1 January.

Highlights on the sale in January-March

  • Monjasa sold a total of 1.23mn t of bunker fuels in January-March, up from 1.08mn t in the first quarter of last year. 
  • It is boosted by higher sales of IMO-compliant 0.5pc sulphur fuel oil and 0.1pc sulphur marine gasoil (MGO).
  • The company’s s most popular fuel in the first quarter was 0.5pc fuel oil.
  • It sold 762,000t of the product, compared with just 2,700t a year earlier when sales were mostly for testing. 
  • Its MGO sales went up by 26pc on the year to 323,000t in January-March.

Fall in sulphur fuel oil sales

Monjasa’s sales of 3.5pc sulphur fuel oil fell to 147,000t from 821,000t.  This accounts for just 12pc of total sales in the first quarter compared with 76pc a year earlier. 

Only vessels with exhaust scrubbers fitted are allowed to burn 3.5pc fuel oil. This is due to the implementation of the IMO cap and switching of the vast majority of the global fleet to low-sulphur fuels.

Monjasa’s major bunkering hubs

Monjasa supplies major bunkering hubs such as Singapore, Hong Kong and Houston, and has said it is the largest marine fuel supplier by volume in west Africa.

The company expanded its operations to Houston in December last year and to Cartagena in Colombia in October.

It also has five bunker tankers from August last year to have more ownership of its supply chain ahead of the IMO sulphur cap. Earlier, Monjasa operated four of the five tankers on a bareboat charter, supplying its own crew and provisions.

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Source: Argus Media

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