Sales of high-sulfur fuel oil (HSFO) rose again in Singapore in November despite stricter environmental rules pushing for cleaner bunker fuel. According to data from the Maritime and Port Authority of Singapore, sales of HSFO, which includes 180 centistokes (CST), 380 CST, and 500 CST marine fuels, were up 0.9% from October to a multiple-month high of 1.193 million tons in November. International Maritime Organization-compliant grades accounted for 28.2% of total sales last month, an increase from 27.8% in October and 24.8% a year earlier.
Market participants and analysts believed that HSFO demand would remain elevated from now on. Global bunker fuel demand is expected to exceed 6 million bpd in 2021 and 7 million bpd in 2028. HSFO is projected to make up 16% of global bunker demand this year, while very low sulfur fuel oil (VLSFO) and LNG are expected to account for 43% and 7%, respectively. By 2030, HSFO is projected to contribute to 25% of global bunker demand, compared to VLSFO 33% and LNG 16%.
HSFO demand is underpinned by the increase in the number of scrubbers installed on vessels. Scrubbers are used to remove pollutants, such as nitrogen oxides (NOx) and sulphur oxides from the exhaust gasses generated by marine engines. This device allows ships to continue using HSFO under the International Maritime Organization (IMO) rules. As of the end of October, around 5,000 ships of above 2,000 dwt had scrubbers installed, which is expected to rise to 7,000 by 2030.
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Published on December 17, 2021 9:40 AM (GMT+8)Last Updated on December 17, 2021 9:40 AM (GMT+8)
