Iran predicts challenges after rise of low sulfur fuel demands

Business Materials 13 January 2020 20:26 (UTC +04:00)

TEHRAN, Iran, Jan.13


Port and Maritime Organization (PMO) of Iran predicts possible challenges in covering low sulfur fuels demands due to their increase in 2020, said PMO representative.

"It is predicted that by rise of low sulfur demand in 2020, new types of fuels including vacuum gas oil (VGO) would be supplied to the market; however, it is not possible to have access to 0.5 percent Smax fuels based on ISO8217:2017 regulation," said Mandana Mansourian, Trend reports citing PMO website.

"Therefore, it is possible that ships operators and owners would face a situation that they can deliver fuel with 0.5 percent Smax, but it might not match viscosity or density of the mandate," the representative added.

"The price of low sulfur fuel 0.5 percent is much lower than distillate fuel used in emission control areas (ECA), but the price difference is not specified," Mansourian said.

The official also indicated that in addition to costs of low sulfur fuel, the other challenge for Iran is switching in the reserve with 3.5 percent sulfur to 0.5 percent.

"The change can not be implemented overnight and the shipment companies need to plan for current fuel consumption in the reserves and concern over fuel insufficiency," she said.

On January 1, 2020, the International Maritime Organization (IMO) low sulfur mandate took effect worldwide with a goal of reducing sulfur emissions from ocean vessels by 80%.

The limit for sulfur in fuel oil used on board ships operating outside designated emission control areas is reduced to 0.50% m/m (mass by mass). This will significantly reduce the amount of sulfur oxides emanating from ships and should have major health and environmental benefits for the world, particularly for the population living close to ports and coasts.