Tightening Bunker Sulfur Specs To Boost Regional Diesel Demand

The IMO is slashing permissible sulfur in bunker fuel to 0.5% from 2020. This will boost gasoil demand good news for sophisticated Middle East refiners.

The UN’s International Maritime Organization (IMO) has confirmed that the global shipping industry will be required to burn fuel with less than 0.5% sulfur content beginning 1 January 2020, a sharp reduction from the 3.5% sulfur limit in place since 2012.

While the new ruling is not a shock – the 0.5% limit was first agreed in 2008 and a target date of 2020 was proposed – the IMO was also considering deferring the introduction date to 2025, depending on the results of a study completed recently.

IMO secretary-general Kitack Lim says reducing emissions of sulfur oxides from maritime vessels will “have a significant beneficial impact on the environment and on human health.” (CONTINUED - 722 WORDS)

DATA INSIDE THIS ARTICLE

table OPEC Outlook For Oil Demand In Marine Bunkers (Mn B/D)
table World’S Top Five Bunker Ports