• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 3 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 1 hour Iran downs US drone. No military response . . Just Completely Destroy their Economy. Can Senator Kerry be tried for aiding enemy ?
  • 5 hours The Inconvenient Truth Of Electric Cars
  • 5 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 1 hour Oil Demand Needs to Halve: Equinor
  • 15 hours Win Against Tyranny: Turkey's Opposition Strikes Blow To Erdogan With Istanbul Mayoral Win
  • 14 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 6 hours NATO Article 5: Attack on one member is attack on all. Members all must come to defense . . . NOT facilitate financial transactions to circumvent and foil US Sanctions. Somebody please tell Angela.
  • 3 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 2 hours The Plastics Problem
  • 2 hours Hydrogen FTW... Some Day
  • 5 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 51 mins Section 232 Uranium
  • 12 hours California and Oil
  • 5 mins Solar Panels at 26 cents per watt

Trader Trafigura Beefs Up Crude Oil And Product Tanker Fleet

oil tanker

One of the world’s major independent commodity traders, Trafigura, has ordered 35 newbuild crude oil and product tankers that will be leased to the trading house with options to buy later, the company said in a statement.

The 35 tankers are being built in China and South Korea and include medium range (MR) tankers, long range tankers (LR2s), and Suezmax tankers.

The order “has been placed by a close Asian financial partner and the vessels are being leased on delivery to Trafigura with options to purchase at a later stage. Vessels are being delivered from today and throughout 2019, with the majority of vessels being delivered in the first quarter of 2019,” Trafigura said on Thursday.

“The super eco-efficient vessels are being built to the highest technical specifications which also meet the upcoming IMO 2020 regulations,” said Rasmus Bach Nielsen, Global Head of Wet Freight Shipping for Trafigura.

“Until 2020, the vessels will run on regular fuel, and from then onwards, whenever allowed (some ports do not allow usage of open loop scrubber), they will burn high sulphur fuel oil, which is possible due to the scrubber onboard each vessel,” a spokesman for Trafigura told Reuters on Friday.

The International Maritime Organization (IMO) has set January 1, 2020, as the starting date from which only low-sulfur fuel oil will be allowed to be used for ships.

According to energy consultancy Wood Mackenzie, shippers will need to either consider switching to alternative fuels, such as Ultra Low Sulphur Fuel Oil (ULSFO) or marine gas oil (MGO), or install scrubbers—a system that removes sulphur from exhaust gas emitted by bunkers.

“Installing scrubbers may be an economically attractive option,” Iain Mowat, senior research analyst, EMEARC refining and oil product markets, at Wood Mackenzie, said.

“Although there is an initial investment, shippers can expect a rate of return of between 20% and 50% depending on investment cost, MGO-fuel oil spread and ships’ fuel consumption,” Mowat noted.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News