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UAE tightens HSFO bunker regulations

  • Market: Oil products
  • 20/11/22

Vessels refuelling with high-sulphur fuel oil (HSFO) at all United Arab Emirates (UAE) ports will now have to submit a copy of an International Air Pollution Prevention (IAPP) certificate, proving that the ship has a working scrubber, the country's Ministry of Energy has said.

The ministry has issued a notice requesting port authorities to confirm receipt of an IAPP certificate before delivering bunker fuel with a sulphur content above 0.5pc, the limit introduce by International Maritime Organisation (IMO) as of 1 January 2020. Scrubbers are exhaust gas cleaning systems that allow ships to continue burning cheaper HSFO as a bunker fuel without contravening IMO regulations.

While the majority of shipping companies, mindful of reputational risks, comply with the IMO regulation, policing all vessels is a difficult challenge.

"There was a concern by the UAE authorities that some shipowners continued buying the cheaper fuel, without even having a scrubber on board," one Fujairah bunker trader said. Delivered HSFO bunker prices in the UAE port of Fujairah, the world's third-largest bunkering centre, have in recent weeks been around $275-300/t cheaper than 0.5pc sulphur bunker fuel.

The share of HSFO in bunker sales in Fujairah has been rising as more scrubber-equipped vessels have been put into use over the past three years. HSFO now accounts for around 20pc of Fujairah's 600,000-650,000 t/month of bunker sales, according to Argus estimates.


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UK should cut emissions by 87pc over 1990-2040: CCC

UK should cut emissions by 87pc over 1990-2040: CCC

London, 26 February (Argus) — The UK advisory Climate Change Committee (CCC) has outlined a "feasible" pathway towards a 87pc reduction in greenhouse gas (GHG) emissions by 2040 for the country, from a 1990 baseline. This is "an ambitious target", but it is deliverable, provided action is taken rapidly", the committee said today. Electrification and "low-carbon" electricity generation would make up 60pc of the emission reduction. The CCC recommends a level of 535mn t/CO2 equivalent (CO2e) for the UK's seventh carbon budget, over 2038-42, including emissions from international aviation and shipping. A carbon budget is a cap on emissions over a certain period. They are legally binding in the UK, with the CCC required to advise the government on the levels outlined. The energy transition "will make the UK economy more resilient, by reducing dependence on volatile international fossil fuel markets", the CCC said. It sees net energy imports falling from 867TWh in 2025 to 202TWh in 2050, with the cost of achieving net zero emissions at around 0.2pc of UK GDP annually on average. Upfront investments will lead to savings, it said. The CCC expects the private sector to contribute much of the investment needed, but noted that "policy is needed to provide confidence". Ramping up renewables "UK-based renewable energy provides the bulk of generation in a larger, future electricity system", the committee said. Its pathway envisages a six-fold increase in offshore wind, to 88GW of capacity in 2040 from 15GW in 2023, while onshore wind and solar power capacity reach 32GW and 82GW, respectively, by 2040. It notes the need for nuclear power, energy storage and grid upgrades. The committee also maps a scenario where the industrial sector — often high-emitting and difficult to decarbonise — uses electricity to meet 61pc of its energy demand, "up from around 26pc today". This would allow "UK manufacturers to benefit from global demand for low-carbon goods", the CCC said. For shipping and aviation, the CCC sees a role for "low-carbon fuels", including hydrogen and bioenergy. But the latter is "constrained by the availability of sustainable sources", while the use of hydrogen is limited, the committee said. The fuel has no role in heating buildings and "only a very niche, if any, role in surface transport". Carbon removals plays a role in emission reduction, but carbon capture and storage (CCS) "is limited to sectors where there are few, or no, alternatives". CCS could be used in industrial sectors or alongside hydrogen, it noted. The CCC saw a role for bioenergy with CCS, and direct air capture, although all carbon capture technology would require developing CO2 transport and storage infrastructure and finalise business models, it said. It also flagged the need for nature-based carbon sequestration, such as new woodlands and peatland restoration. The proportion of electric vehicles (EVs) significantly increases in the committee's pathway, to three-quarters of cars and vans and almost two-thirds of heavy goods vehicles being electric by 2040 — up from 2.8pc of cars and 1.4pc of vans in 2023. The falling cost of batteries will allow EVs "to reach price parity with comparable [gasoline] and diesel cars between 2026 and 2028", the CCC said. The pathway has around half of UK homes using heat pumps by 2040, from 1pc in 2023. The UK government must now propose, by 30 June 2026, a level for the seventh carbon budget, which parliament will then approve or reject. The government has in recent months stuck to CCC advice, setting out a national climate plan which pledged an 81pc emissions cut by 2035 , in line with CCC recommendations. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump's Canada, Mexico tariffs deadline looms


25/02/25
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25/02/25

Trump's Canada, Mexico tariffs deadline looms

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Deadline nears for Dutch marine fuel parallel claims


25/02/25
News
25/02/25

Deadline nears for Dutch marine fuel parallel claims

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India’s bitumen imports, consumption slip in 2024


25/02/25
News
25/02/25

India’s bitumen imports, consumption slip in 2024

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Reopening New Zealand refinery could cost $4bn: Study


25/02/25
News
25/02/25

Reopening New Zealand refinery could cost $4bn: Study

Sydney, 25 February (Argus) — Reopening New Zealand's mothballed 135,000 b/d Marsden Point refinery (MPR) could take six years and cost up to NZ$7.3bn ($4.2bn), according to a government-commissioned study. MPR, New Zealand's only refinery that is located north of largest city of Auckland, was converted to an oil product import terminal in 2022. The interim report, which was commissioned by New Zealand's National-led government last year, cited Australian professional services firm Worley's estimates that reestablishing refining would require NZ$4.9bn-7.3bn. This imposes significant risks and costs on MPR owner Channel Infrastructure, which has imported oil products since refining ended in 2022. A reopening would provide more resilience against quality issues with imported fuels, increase stockholding and provide local employment. But this is offset by a dependence on crude imports, with MPR becoming a single point of failure risk, and increased greenhouse gas emissions associated with refining. Fuel Security Study The Ministry of Business, Innovation and Employment on 25 February separately released a Fuel Security Study, which found that fuel security remains threatened by supply disruption. It recommends that the nation instead focus on increased storage and zero-emission vehicles instead of reopening MPR. The strategies considered for improving New Zealand's fuel supply security included reopening the refinery or building a new one, increasing jet fuel and diesel storages, expanding trucking capacity to mitigate against infrastructure failures, investing in biofuels production and increasing uptake of zero-emissions transport. Resurrecting MPR or building a new refinery for locally produced crude would be inefficient given either expense or the limited effectiveness that a new facility would have in supplying all fuel types required, the study found. The most cost-effective security enhancement is increasing storage levels of diesel and jet fuel, while gasoline was less of a concern given generally high stocks, with more gasoline storages to be converted to other fuels as demand falls owing to electric vehicle (EV) uptake. EVs will likely diminish New Zealand's reliance on gasoline but diesel use will taper off more slowly given less advanced alternatives, while jet fuel demand is likely to rise without other realistic options in the short term. Biofuels were found to be viable for securing domestic jet fuel and diesel supply, but further study is required and developing this sector would cost more. About 70pc of New Zealand's fuel imports are from Singapore or South Korea, exposing the country to shipping disruptions, but fuel companies' ability to adjust supply chains would mitigate any major impacts, the study said. Internally, the threat of natural disasters impacting pipelines or import terminals should lead to more thorough planning for such events. New Zealand would carefully weigh the costs and benefits of the actions suggested in the fuel study, associate energy minister Shane Jones said on 25 February, including considering the creation of energy precincts and special economic zones to spur a domestic biofuels sector. Jones, a member of the NZ First party in coalition with National, added that creating such zones with special regulations and investment support could help attract overseas investors. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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