Connect with us

IMO 2020

FOBAS service update: S2020 – 18 Months to go!

Updates on fuel supply chain, IMO, progress of ISO 8217 and 0.50% VLSFO quality concerns.

Admin

Published

on

5b390b0fd0d33 1530465039

The following update has been provided by the Lloyd’s Register Fuel Oil Bunkering Analysis and Advisory Service (FOBAS):

This bulletin is an update to our previous bulletin addressing key questions related to the implementation of MARPOL Annex VI regulation 14.1.3 coming into force on 1st January 2020. Consistent implementation of the regulation (outside ECA-SOx), quality, and availability of 0.50% VLSFO (Very Low Sulphur Fuel Oils) remain the main talking points at various industry forums.

An Update on the Fuel Supply Chain

It is anticipated that the majority of ship operators will switch to 0.50% VLSFO to comply with the regulation. This would mean refineries, storage depots and physical suppliers will have to contend with over 150 million tonnes of high sulphur residual fuel oil becoming surplus. Refiners are faced with a difficult decision to make multimillion pound-long term investments for bottom upgrading, source sweet crude or look for other outlets for high sulphur residual fuels after January 2020 when this convenient marine bunker option is no longer available. Some refineries have made a decision to invest in a coking plant, however, there are others who may be playing a waiting game on how exhaust gas scrubber markets evolve.

The IMO fuel availability study predicted that around 3,800 ships with EGCS will be in use by the implementation date; however, the figure is looking more likely to be about 1000-1500 ships. The relatively small uptake of Exhaust Gas Cleaning systems (EGCS) at this time will be unlikely to make a significant difference, despite a recent surge in orders with indications that the order slots for completion January 2020 are almost full. However, with the potentially greater price differential between high sulphur fuel oil (HSFO) and 0.50% VLSFO by 2020 and short pay-back, ship owners & operators have shown increased interest in installing scrubbers on their vessels. Nevertheless, there are a number of relevant operational, logistical, technical, regulatory and commercial parameters which require careful consideration when making a decision to install an EGCS, making it a complex issue. Lloyd's Register has developed an option evaluator to help clients make an informed decision based on the specific operational profile of their vessels.

To help the fuel supply chain, we also emphasise to ship operators the need to engage in open dialogue with their charterers and suppliers on the type of fuel they will need, based on ship operations and trading pattern so that suppliers also get themselves prepared to meet the demand ahead of 1st January 2020 deadline.

Implementation – An update from IMO

During PPR5 (Pollution, Prevention and Response – an IMO sub-committee) held in March 2018, a few key areas of implementation of the regulation 14.1.3 were discussed and some actions agreed. It has been made clear that the implementation date is 1st January 2020 and there is no possibility of any delays. Secondly, PPR5 principally agreed the proposal of a carriage ban of non-compliant fuels on board after the implementation date which is expected to come into force from March 2020. It was agreed to produce a Consistent Implementation guide to cover various implementation parameters such as enforcement, safety, quality of fuel, verification, port state control, FONAR (Fuel Oil Non-Availability Report) etc. which will be presented and discussed at an intersessional PPR5 working group meeting scheduled for 9 to 13 July 2018. There have also been discussions on the requirements for ships having designated sampling points to facilitate compliance verification for port state control. A number of submissions have been made to the IMO from member states and NGO’s related to the implementation of the 0.50% regulation which are being carefully considered and taken up for discussion. We (LR) is actively participating in these discussions as a recognised organisation and we will keep our clients informed of the developments.

Progress of ISO TC28/SC4/WG6 (ISO 8217)

A question of whether ISO 8217 provides coverage for all marine distillate and residual fuel oils remains an important discussion point. As it stands today, ISO 8217 provides coverage to all marine fuels, however in view of the expected variations in 0.50% S fuels, we anticipate further guidance from the ISO and CIMAC fuels working groups on how best to order and manage these less familiar formulations.

ISO TC28/SC4/WG6 is mainly working on the development of PAS 23263 (Publically Available Specification – an insert to the latest ISO 8217) which will specifically address the 0.50% sulphur fuels quality. At the moment, it is not clear when exactly the PAS 23263 will be available, however considering industry pressure on this front, it is expected somewhere around mid-2019. Secondly, there has been lot of concern with regards to the stability of future fuels. An ISO sub-group has been actively working to evaluate and conclude the most appropriate test method(s) to determine the stability of new fuel formulations.

0.50% VLSFO Quality Concerns

One of the main quality concerns is the long-term storage stability and compatibility between two different bunkers. Stability is mainly a supplier’s issue, as they are responsible for supplying a stable blend to the vessel. However, controlled mixing or complete segregation on-board between two potentially incompatible fuels is the vessels responsibility. Thus there needs to be an increased awareness amongst all stake-holders on issues which can originate from unstable fuels and two stable but incompatible fuels. To help ship operators, the FOBAS team is looking into the existing compatibility test method and any alternative methods which may be more suited to the new fuel formulations. Subsequently we will provide guidance alongside specific compatibility testing to help effectively manage the future blends.

Secondly, there is a high probability of paraffinic blends making their way into the marine bunker market, which will not only increase the need to address higher pour points but also the general cold flow properties of fuels. It is expected that the majority of the 0.50% VLSFO will be light residual products with viscosity between the current distillate (DM) and residual (RMG) grades of ISO 8217. Moreover, relatively lighter blends would make it easier for any catfines to readily separate, however this may warrant increased monitoring and cleaning to remove accumulated catfines from tank bottoms.

Whilst at this time not many 0.50% products are around, our data however indicates that there are naturally low sulphur heavy fuel blends being supplied in specific locations around the world such as South America, West Africa and North Africa. Moreover from China and Thailand, likely due to the 0.50% Chinese emission control regulation. We have also been receiving 0.50% VLSFO samples for analysis which appear to be blended products to comply with the regional maximum 0.50% sulphur regulation. We (FOBAS) have started to develop the characterisation of the 0.50% VLSFO with currently available fuels and will continue to do so as various suppliers bring VLSFO to the market in run up to the 2020 deadline.

Please note that Lloyds Register FOBAS have also produced specific guideline titled ‘Sulphur 2020: What’s your plan?’ to facilitate the ship operators plan for upcoming regulation. We will continue to provide updates as and when there are significant developments to keep you informed.

Published: 2 July, 2018

 

Continue Reading

Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

Admin

Published

on

By

india flag

VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

Continue Reading

Port & Regulatory

Study: Major drop in ship sulphur emissions confirmed following IMO regulations

National Centre for Atmospheric Science study found that the average sulphur content in ship fuel dropped nearly tenfold in open ocean areas following IMO’s 2020 regulation.

Admin

Published

on

By

shraga kopstein on Unsplash

Recent global regulations have significantly reduced sulphur emissions from ships, helping to improve air quality in coastal regions – confirmed by a recent international study led by researchers at the National Centre for Atmospheric Science. 

The research, published in Environmental Science: Atmospheres, used aircraft and ground-based instruments to measure sulphur dioxide and nitrogen oxides emitted by ships in the North-East Atlantic and European coastal waters between 2019 and 2023.

The team found that the average sulphur content in ship fuel dropped nearly tenfold in open ocean areas following the International Maritime Organization’s 2020 regulation, which capped sulphur content in marine fuel at 0.5%. 

Before the change, many ships exceeded the previous 3.5% limit. After 2020, only a small number of ships were found to breach the new standard.

In European sulphur Emission Control Areas (SECAs), such as the English Channel and the Port of Tyne, sulphur levels were even lower – well below the stricter 0.1% limit. Interestingly, ports outside these zones, like Valencia in Spain, also showed low sulphur levels, likely due to EU rules requiring cleaner fuel when ships are docked for extended periods.

This is the first study to use aircraft-based measurements and predictions from the Ship Traffic Emission Assessment Model (STEAM3) to assess ship emissions outside of sulphur control zones since the 2020 regulation came into effect. The findings support the widely held view that ships now emit around seven times less sulphur than before the rule change – an important step toward cleaner air and healthier coastal environments.

Note: The research, titled ‘SO2 and NOx emissions from ships in North-East Atlantic waters: in situ measurements and comparison with an emission model’ can be found here. 

 

Photo credit: shraga kopstein on Unsplash
Published: 8 December, 2025

Continue Reading

Interview

IBIA Annual Convention 2025: ‘Exciting times’ for post IMO 2020 bunker suppliers, states Equatorial

Choong Sheen Mao, Chief Operating Officer, Equatorial, describes to Manifold Times the pre/post IMO 2020 challenges and evolution of bunker suppliers.

Admin

Published

on

By

Sheen Mao MT

The International Bunkering Industry Association (IBIA) will be hosting its flagship Annual Convention in Hong Kong at the Hong Kong Convention Exhibition & Convention Centre between 18 to 20 November 2025, as part of Hong Kong Maritime Week.

Choong Sheen Mao, Chief Operating Officer, Equatorial Marine Fuel Management Services (Equatorial), speaks to bunkering publication Manifold Times about the challenges of a post IMO 2020 bunker supplier.

MT: How does Equatorial continue to offer customer assurance and maintenance of marine fuel quality to ISO8217 standards despite increasing complexity of bunker fuel blends?

We maintain our focus to provide compliant, quality and competitively priced products to our customers. There is no shortcut. We source our products from a wide range of cargo producers and suppliers. We continue to be strict and vigilant with our testing programme for our products before delivering them to our customers. Equatorial has deepened our engagement with the wider industry to have a better and up-to-date understanding of the existing and new marine fuels.

MT: Can you share the evolution of commercial marine fuel procurement, blending and trading strategies on the back of increasing fuel types (pre/post IMO 2020)?

Pre IMO 2020, the main types of marine fuel procured and consumed by vessels were high-sulphur fuel oil, marine diesel oil and marine gas oil. Trading strategies were therefore closely linked to that within the oil industry.

However, many of the new fuel types are from other industries. For example, biofuels, methanol and ammonia are mainly products from the chemical and agriculture industries. There are marked differences between these industries and the energy industry (in particular, the marine fuels industry). LNG is from the gas industry which is distinct from the oil industry.

Without an existing liquid paper market for many of these commodities (especially as a marine fuel), the price risk management is less straightforward. Furthermore, commodity prices are no longer the sole consideration for price itself. The price of compliance must be considered. This could range from guaranteeing the origin of the marine fuel, its sulphur properties as well as its carbon intensity. The list goes on.

MT: Operational wise, what are the changing role and responsibilities of a bunker supplier to date, compared to before IMO 2020?

The role and responsibility of a bunker supplier have evolved. Fundamentally, it has been about providing quality marine fuels at competitive prices. Quantity assurance has been a critical concern which led to the mandatory implementation of the mass flow meter system for bunkering in the Port of Singapore. Interestingly, due to the nature of credit terms in the bunker industry, bunker suppliers also performed the role of “bankers” by extending favourable credit terms to shipowners and charterers.

These days, post IMO 2020, things have become even more complicated. Today, a bunker supplier retains the abovementioned roles and responsibilities, and much more – it has to ensure compliance with a plethora of rules and regulations. Compliance not only with sulphur cap requirements, but with international and regional sanctions and restrictions unrelated to the quality of the marine fuel itself. In fact, especially with alternative low- and zero-carbon marine fuels, this means compliance with standards, rules and regulations on sustainability such as the European Renewable Energy Directive and/or International Sustainability and Carbon Certification. There is also the need to comply with increasingly stringent safety regulations on both conventional and alternative marine fuels.

In addition to the above, a post IMO 2020 bunker supplier is still expected to supply compliant and quality fuel at competitive prices.

MT: Equatorial is Singapore’s largest local-born supplier; what is the next big thing for the company?

Equatorial continues to adapt and improve with the times, while maintaining its core values – Integrity, Teamwork, Commitment, Proficiency and Quality, and Safety and Environment. The bunker industry is a highly competitive one, and it is our intention to keep our competitive edge and remain relevant. This means that we have had to step out of our comfort zone and embrace the two mega trends of our time – digitalisation and decarbonisation.

We have been early adopters and developers of the electronic bunkering note as part of our own digital bunkering efforts. We have diversified our product offering to include low carbon marine fuels and are proud to be one of the pioneers for bunkering B100 biofuels earlier this year. This was made possible by the arrival of our IMO Type II chemical and oil bunker tankers. These same bunker tankers are also capable for carrying and delivering methanol. Equatorial has invested in an LNG bunkering vessel (LBV) newbuilding that is set to be delivered in Q3 2027. We are also involved in a study to develop low- or zero-carbon ammonia bunkering in Singapore.

These are exciting times.

Note: Choong Sheen Mao is amongst panellists featured in ‘Session Three: Bunker Sellers Panel’ at the IBIA Annual Convention 2025.

Join the Conversation

With over 300 delegates expected, the IBIA Annual Convention 2025 is set to be a defining moment for the marine fuels industry. Registration is now open via the IBIA Annual Convention website.

 

Photo credit: Manifold Times
Published: 31 October 2025

Continue Reading

Trending