Belgium-based shipping company Euronav will use one of its Ultra Large Crude Carriers (ULCC) to store 0.5pc sulphur fuel oil in Europe for the consumption of its own fleet, ahead of the sulphur cap in 2020.
Euronav will buy 0.5pc sulphur fuel oil during the remainder of 2019 and store it in its 442,000t ULCC Oceania, Euronav chief executive Paddy Rogers told Argus today.
"Our fleet consumes around 1mn t of marine fuel per year. We are buying ahead of our need to smooth out costs." Rogers said.
The move positions Euronav as one of the proactive shipowners ahead of 2020, along with AP Moller-Maersk, which will supply up to 1.25mn t/yr of 0.5pc marine fuel to customers next year in the US Atlantic coast. Other shipowners opted for scrubbers to continue burning high-sulphur fuel oil. Major shipowners installing scrubbers include Scorpio, MSC, Frontline and Carnival.
Rogers expects low-sulphur straight-run fuel oil to be one of the major marine fuels next year.
Oceania has been off Malta in the Mediterranean since mid-January, ship tracking showed.
Euronav's fleet consists of two ULCCs, 43 Very Large Crude Carriers (VLCC), 25 Suezmax tankers and two Floating Storage and Offloading (FSO) units.
