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Transcription:

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

Agenda Regulation & Legislation Fuel Trends Affects on Engines Prepare of 2012 2

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

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)* 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 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 2020. 4

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

Agenda Regulation & Legislation Fuel Trends Affects on Engines Prepare of 2012 6

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

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

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 0 10 20 30 40 50 60 70 80 90 100 Sulphur > 3.50% Sulphur 3.50% 9

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

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

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

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

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

Agenda Regulation & Legislation Fuel Trends Affects on Engines Prepare of 2012 15

Fuel Change-over challenges HFO MGO 16

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

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

mg/kg Worldwide bunker trend (HS and LS) Average Al+Si 35 30 25 20 15 Most engine manufacturers recommend Al+Si <15 mg/kg at engine inlet 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year 19

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

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

Agenda Regulation & Legislation Fuel Trends Affects on Engines Prepare of 2012 22

2012 the big change 23

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

cleanairatsea.com 25

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

Blending to meet 2012 Global Cap Target 3.50% S HFO 8% Blend + 3.79% S MGO 0.15% S HFO $650 MGO $940 = + 75 USD/MT Target HFO 12.5% Blend + 3.33% S 3.79% S MGO 0.15% S + 115 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

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

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

1989 - Off the West Coast of Norway Unable to restart the Main engine, FUEL VISCOSITY TOO LOW 30

Smooth sailing Thank You 31

Safeguarding life, property and the environment www.dnv.com Sami A Sarosh Technical Support Manager samisa@dnvps.com 281-470-1030 32