10% of marine fuel to be scrubbed in 2020: Woodmac

Research firm Woodmac has forecast that just over 10% of marine fuel will be scrubbed in 2020 when the IMO 0.5% sulphur cap rule is enforced.

Woodmac has further anticipated compliance with the regulation to be at 85% in 2020, rising to full compliance by 2025, according to a Reuters report.

Starting 1 January 2020, IMO will prohibit ships from using fuels with sulphur content over 0.5%, compared to the maximum limit of 3.5% today. Ships can continue to burn high sulphur bunker fuel provided they are installed with scrubbers to reduce the sulphur content to no more than 0.5%.

The use of LNG as fuel for ships will increase 70% between 2019 and 2020, which will displace approximately 100,000 barrels per day (bpd) of marine fuels in 2020.

On the refinery side, refining margins are expected to rise across the board in 2020 but the big winners will be deep conversion refineries with units to convert heavy residues to lighter, more valuable products, and refineries that focus on production of distillates.


Posted 08 February 2019

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Lee Hong Liang

Asia Correspondent

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