US to Win Big from IMO 2020
The US is set to be the big winner from the International Maritime Organisation’s upcoming regulations on sulphur emission, according to commodities trading house Gunvor group.
Gunvor Group Chief Executive Torbjorn Tornqvist said at the Oil and Money conference in London that the switch to alternative, low-sulphur fuels would create “cocktail of fuel blends” from which the US would benefit the most.
The IMO’s regulations, due to come into force on January 1 2020, will prohibit shipping lines from emitting more than 0.5% of sulphur in their fuel.
Read more about the IMO's plans and how they'll affect shipping by reading a Port Technology technical paper
This has forced many in the industry to pursue environmentally friendly fuels, such as liquefied natural gas (LNG), and energy efficient technologies.
Furthermore, it has also meant some of the world’s biggest lines to adjust and increase their surcharges to pay for the cost of complying with the new rules.
Quoted by Reuters, Tornqvist said: “The big winner in the IMO is actually the United States. They have the most advanced refining system in the world and will take advantage of importing more heavy crude oil and they will export light crude oil that will get a bigger premium.”