“KBC worked with Raffineria di Milazzo to define the refinery configuration for total destruction of our heavy fuel oil production. In addition, KBC assessed the impact on utilities systems, hydrogen production requirements, the amine system and the sour water strippers. We are very happy with the work performed which has enabled us to make informed decisions on the configuration required for a future in which there isn’t a market for heavy fuel oil.”
Formulating your refinery's best response
The IMO regulation limiting sulphur in the fuel oil used by ships to 0.5% becomes binding from January 1, 2020. It is the most disruptive change to impact the oil industry in the last 30 years. It affects the majority of global waters and is a fundamental shift in fuel production that moves marine bunker fuel from by-product status to an on-purpose, on-specification fuel. The IMO's decision presents challenges and opportunities for both the shipping industry and the oil industry. KBC can guide you in formulating the best response for your refinery.
Ship owners not likely to invest
The shipping industry today is running over capacity and operating with historically low margins and freight rates. In addition, shippers are facing a complex array of other regulatory issues, such as ballast water controls, future CO2 emissions targets, mandatory stack monitoring and insurability.
Shippers are convinced that scrubbers, along with the sludge retention and disposal, are not affordable. They expect compliant fuels to be made available, moving the challenge from the shippers to the refiners.
Assess your options and plan your actions
Book a 1-day on-site IMO 2020 Action Plan Workshop with a KBC expert and the key stakeholders from your refinery. We'll analyze your refinery's unique situation and provide a clear action plan outlining the potential operational changes and capital investments you should make to remain competitive. The workshop includes:
- KBC's detailed assessment of the market impacts specific to your region and your refinery
- Review of any plans you may have already formulated in response to the regulation and an assessment of your potential degree of economic exposure
- Robust model-based approach to analyzing your options
- Recommendations on your refinery’s best available responses to the threats and opportunities presented by the regulation
Request your IMO 2020 action plan workshop
Complete the form below to register your interest in a workshop and one of our consultants will contact you.