We are getting very close to the 2020 deadline for the implementation of the IMO regulation fixing the suflur cap of 0.5 pct for marine bunker fuels. The matter have been long discussed all over the world, suppliers are gradually disclosing their plans and we are actively taking on the challenge and reserve our place at the table.
As a substantial development in the strategies of Bunker Energy, we are pleased to say that we are at the stage of finalizing the logistics with barges and terminal to assure consistency of availability and deliveries of compliant fuels well before the 1st January 2020. The first batch of ifo 0.5 pct has already been brought in last week but it will not be available for sale soon, not until all lines and pumps have been properly flushed to avoid any contamination from other higher sulfur fuels. We will ensure regular avails of straight run 0.5 product; blended fuels will be supplied in lieu only when no other product can be sourced.
Specification will be compliant with ISO 8217 2017 with exception of sulfur mass % 0.5 max. We are deciding the pricing structure which will apply and we plan to start offering for compliant fuels by the end of Q3 or earlier for those clients who decide to agree on contractual terms. For years, Augusta has been by far the largest petrochemical hub in Italy. Bunker Energy ambition is to promote Augusta’s role and recoup its prime position as a bunkering port for ships sailing cross-Med. To achieve this, we have initiated a marketing and sales campaign targeted especially for clients who have, until recently, opted to supply their ships in alternative ports, not necessarily close by. Augusta is no big deal of a deviation for vessels that are sailing through the Mediterranean.
Bunker Energy operation is such that major players opt for the Augusta not only for the sheltered bunkering area but also for the high level of service they receive: we are fully in control of all stages of the delivery, from the moment we buy the product to when it gets on board the ships. Similar steps are being taken for Civitavecchia, where there is a situation comparable to Augusta in terms of tankage volume, around 50,000 cbm vs. 57,000 cbm in Sicily. We expect a much higher demand due to the traffic mainly of roro-pax and cruise ships calling the Roman port. The supply of HSFO, LSFO and marine gasoil will not be discontinued for those clients who have opted for scrubbers or have decided to stick to gasoil until any doubts and concerns cast on VLFO have been cleared. The main input will necessarily have to come from our clients: their needs and requirement will lead us to the constant improvement of our performance which will be ultimately beneficial to them. We are extremely conscious of the new goal posts on the ground have been moved forward; we are totally confident in our capacity to tackle successfully the very real challenges that lie ahead.
Source: Bunker Energy