South Korean refiners plan to offer
fuel oil with a sulphur content of less than 0.10%, according to sources.
Staff
from SK Energy and GS Global Corp, an
affiliate of GS Caltex, told
Bunkerworld they would be able to provide the low sulphur fuel oil (LSFO)
product from December onwards.
A
Seoul-based trader said the 0.10% LSFO would be a residual grade with viscosity
similar to RMG 380 and not a distillate fuel.
He
explained that South Korean refineries had already been producing 0.10% LSFO
but that the grade had not been supplied to the bunker market.
Deliveries
of 1.00% sulphur LSFO from South Korean bunker suppliers, in the mean time, are
expected to be phased out during the next two months.
GS
Caltex is expected to stop supplying 1.00% LSFO in the week ending November 8.
SK
Energy will halt supplies of 1.00% LSFO from the middle of December.
A Hyundai
Oilbank source
said the refiner would stop supplying 1.00% LSFO "possibly early
December," or when demand falls.
The
sulphur limit for bunker fuel used within emission control areas (ECAs),
currently at 1.00%, will be lowered to 0.10% from January.
Demand
for low sulphur product in South Korean ports comes from vessels heading into
the North American ECA.
Most
international shipping operators are expected to use low sulphur marine gas oil (MGO) to
meet the new ECA requirements.