BP’s global head of marine fuels has said global refiners have spent $1bn to date producing low sulphur bunker fuel ahead of next year’s global sulphur cap.
Speaking at the Fujairah Bunkering and Fuel Oil Forum yesterday, BP’s Eddie Gauci said, “There’s certainly strong supply of compliant fuel oil, particularly in hub locations (like) Rotterdam, Singapore and Fujairah,” in comments reported by Reuters.
BP has recently outlined its low sulphur fuel sales plans, along with other majors such as ExxonMobil, Shell and Sinopec.
“There’s been a huge amount of investment in refineries since 2015 and (it) will continue beyond 2020,” Gauci told the conference in the UAE.
In smaller ports lacking adequate fuel storage to hold the range of fuel grades needed, suppliers of compliant marine fuels could turn to floating storage, Gauci predicted.
“We will see some floating storage of high sulphur or low sulphur for a period of time until the land-based infrastructure establishes some kind of equilibrium that’s in tune with what grades of fuel are called for in particular locations,” he said.