New Regulatory Environment

Transcription

1 Platts Bunker and Residual Fuel Oil Conference, Houston Sami A Sarosh

2 Agenda Regulation & Legislation Fuel Trends Affects on Engines Prepare of

3 DNVPS Our global footprint Oslo Region, Norway Rotterdam Region, The Netherlands Oslo laboratory Rotterdam laboratory Sales & Marketing Sales & Marketing Houston Region, USA Houston laboratory Sales & Marketing Fujairah Region, UAE Fujairah laboratory Sales & Marketing Singapore HQ & Singapore Region Headquarters of DNVPS Singapore laboratory Sales & Marketing 3

4 Regional Regulation and legislation Marpol Annex VI ratified May 19 th Marpol Annex VI global S limit 4.5% May 19 th Marpol Annex VI SECA1, S limit 1.5% Nov 11 th Marpol Annex VI SECA2, S limit 1.5% July 1 st ECA limit down to 1.00% S Jan 1 st Global limit down to 3.50% Jan 1 st ECA limit down to 0.10% S Global S limit down to 0.50% (subject to review)* Aug 11 th SECA 1, directive into force 1.5% S Aug 11 th SECA 2, directive into force 1.5% S July 1 st CARB Phase 1, MGO (max 1.5%) or MDO (max 0.5%) use only within 24NM Jan 1 st Directive S limit of 0.1% at berth August 2012 within 200 NM to use LS fuel according to Marpol Annex VI ECA limits Jan 1 st CARB Phase 2, Max 0.1% distillate use only within 24NM * In line with the UK's proposal, the working group also suggested that there should be a review in 2018 to assess fuel availability. Depending on the outcome of the review, the 0.50% sulphur global standard may be delayed to 2025 instead of

5 Impact of Regulations Significant changes for - Engine builders - Ship operators - Fuel suppliers - Lubricant providers 5

6 Agenda Regulation & Legislation Fuel Trends Affects on Engines Prepare of

7 WW bunker statistics - HFO (2004) Sulphur content 0.2% 99.8% 4.50% >4.50% 7

8 WW bunker statistics - HFO (July, 2010 March, 2011) Sulphur content 10% 90% 3.50% >3.50% 8

9 WW bunker statistics - HFO (July, 2010 March, 2011) Fujairah Busan LA&Long Beach Houston New York Miami Singapore Hong Kong Ceuta Rotterdam Panama Canal Piraeus Gibraltar Algeciras Shanghai Antwerp St. Petersburg Hamburg Durban Sulphur > 3.50% Sulphur 3.50% 9

10 Blending S Meeting Sulphur limit of 4.50% Meeting Sulphur limit of 3.50%? At 4.50%, Sulphur is not a critical spec, but at 1.50% it is Dr. Rudy Kassinger, DNVPS Side effects of blending 10

11 Side effects of blending average density average abrasive levels (Al+Si) unstable fuels ignition/combustion quality flash point 11

12 Cat fines Cat fines Source Cat fines - Problems? Cat fines - Solution? 12

13 Fuel treatment and Al+Si Separator Avg. Reduction = 62% in the separator(s) (DNVPS Fuel System Check study) -Keep the HFO inlet temperature at 98 o C -Use correct flow ratio -Follow Separator configuration procedures - Maintain the separators -Regularly clean storage, sett and service tanks -Educate and train staff -Check fuel system efficiency regularly 13

14 Affects of Poor Fuel Ignition & Combustion Starting difficulties/failure Post combustion deposits Burned down piston crowns Blow-by / Scuffing Increased Emissions

15 Agenda Regulation & Legislation Fuel Trends Affects on Engines Prepare of

16 Fuel Change-over challenges HFO MGO 16

17 Fuel Change-over - Pre Requisite - Commercial aspect - Compliance aspect - Technical aspect 17

18 LSFO! Use inherently LS crude stocks. Invest in de-sulphurisation units Blend to LSFO specification Quality 18

19 mg/kg Worldwide bunker trend (HS and LS) Average Al+Si Most engine manufacturers recommend Al+Si <15 mg/kg at engine inlet Year 19

20 Operation on distillate fuels Problems Reported Viscosity Lubricity Flash point Compatibility 20

21 Fuel Change-over challenges (HFO ~ MGO)? Fuel Pumps Thermal damages Insufficient lubricity of the fuel Gasing of MGO Fuel Preheaters by-pass the fuel pre-heaters Use of Chillers Fuel Tank Return/recirculation pipes Tank capacity/availability? 21

22 Agenda Regulation & Legislation Fuel Trends Affects on Engines Prepare of

23 2012 the big change 23

24 WW sulphur cap 3.50% and ISO 4259 A supplier can be 95% certain that his fuel has a sulphur level of 3.50% provided his release limit is set to 3.33% or below. 3.33% 3.50% 3.67% 24

25 cleanairatsea.com 25

26 WW bunker statistics - HFO (July, 2010 March, 2011) Sulphur content 10% 90% 3.50% >3.50% 26

27 Blending to meet 2012 Global Cap Target 3.50% S HFO 8% Blend % S MGO 0.15% S HFO $650 MGO $940 = + 75 USD/MT Target HFO 12.5% Blend % S 3.79% S MGO 0.15% S USD/MT = Will we see a price increase in 2012?...if so,? $ Quality will be affected by the cutter stock used and the blending procedures. 27

28 What is the prescription for Fuel QC? Fuel oil quality ~ directly related to the safe operation of ships Be selective in choosing a supplier Always test the fuel Do not use before the test Avoid mixing fuels Staff training + Documentation Representative sample ~ sole evidence 28

29 Engines Always never Remember. fail when it suits you!!!! 29

30 Off the West Coast of Norway Unable to restart the Main engine, FUEL VISCOSITY TOO LOW 30

31 Smooth sailing Thank You 31

32 Safeguarding life, property and the environment Sami A Sarosh Technical Support Manager samisa@dnvps.com