Maersk is getting its low sulphur fuel supplies fixed around the world as the days count down to the introduction of the global sulphur cap. The Danish carrier has signed with PBF Logistics to source process crude oil at CPI Operations, a PBF Logistics terminal facility in New Jersey, United States.
The agreement enables Maersk Oil Trading to supply IMO 2020-compliant 0.5% marine fuel to its customers on the US East Coast. Annual production will be around 1.25m metric tonnes, the equivalent of approximatelty 10% of Maersk’s annual fuel demand.
“This processing agreement forms a cornerstone in Maersk’s fuel sourcing strategy for the IMO 2020 sulphur cap,” said Niels Henrik Lindegaard, head of Maersk Oil Trading. “The vast majority of our fleet will comply with the regulation through use of compliant low sulphur fuels. With the capability to produce and store compliant low sulphur fuel on the US East Coast we take control of the fuel supply in a key maritime hub for us. We will continue our drive to ensure compliance in all geographies come 2020.”
PBF Logistics acquired CPI Operations from Crown Point International in October last year. Assets include crude processing and storage located on the Delaware River south of Philadelphia, Pennsylvania.
The company said it will repurpose a portion of its existing idled asphalt facility to process an average of approximately 25,000 barrels per day of crude for Maersk.
In August last year, Maersk and Vopak announced a leasing agreement for storage of 2.3m tons of 0.5% compliant fuel, equivalent of approximately 20% of Maersk’s annual fuel demand, at the Vopak Europort Terminal in Rotterdam.