[Sponsored Report] Hyundai Oilbank taps very low sulfur market
Published: 30 Oct. 2019, 19:10
Hyundai Oilbank has increased very low sulfur fuel oil production ahead of the International Maritime Organization’s new sulfur regulations. [HYUNDAI OILBANK]
To meet new regulations that restrict sulfur levels in marine fuel oil to 0.5 percent, Hyundai Oilbank has updated some of its advanced facilities and altered its manufacturing process to produce the new fuel oil.
Hyundai Oilbank also has installed the world’s first new technology to completely remove asphaltene from its products to strengthen the stability and compatibility of its fuel.
After solving the stability problem of mixed oils, the firm has been able to cope with the increasing demand for very low sulfur fuel oil, minimize investment cost by utilizing existing facilities and control production according to market demand.
Currently, very low sulfur fuel oil is traded at approximately 30 percent higher than regular oil. As the demand for very low sulfur fuel oil increases due to the IMO regulation, the margin between the two products could widen.
Energy-related global research firm Energy Aspects has forecast that the share of very low sulfur fuel oil will exceed 50 percent of the global marine fuel oil demand of 3 million barrels per day by 2020. Furthermore, it is expected to grow to 2 million barrels per day in the near future.
In order to meet the sulfur content standard based on the IMO regulation, domestic and foreign companies have been preparing new facilities by desulfurizing bunker oil and mixing various oils with different sulfur levels.
“We will continue to respond to market changes by securing long-term contracts for ultra-low sulfur vessels with advanced technologies,” said an official from Hyundai Oilbank.
By Shim Ji-yong [[email protected]]
with the Korea JoongAng Daily
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