Shift to 0.5% sulphur bunker fuel-I: Indian refineries unprepared
Indian Refineries will have a severe shortage of FO for bunkering purposes from 2018-19 onwards due to reduced production by refineries 8Refinieries will have to cooperate on product sharing to ease the burden. 8Import of FO will have to be resorted to for supply to customers. Cost shall be the key deciding factor in such an arragnement 8Indian refineries are also completely unprepared for production of 0.5% Sulphur FO for bunker use as per latest MARPOL guidelines which will come in force by 2020 8There will be a rising use of distilates in comparison to residual fuel and their prices are expected to shoot up as a conseqeuence. 8If Indian refineries are not prepard, import will be an extremely costly affair. 8The other way to comply will be through use of advanced onboard technologies, such as scrubbers exhaust gas recirculation, selective catalytic recovery or water injection, is going to cost money too as would be the use of alternative fuels such as LNG, methanol or biofuels. 8The only hope now lies in the relaxation of the 0.5% suphur stipulation and extending the date of compliance to 2025 from 2020, which seems to be a possibility. Click on Reports to find out the extent of unpreparedness of the Indian refining sector to the ensuing revolution in bunker fuel use.