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ENVIRONMENTAL & REGULATORY ISSUES IN BUNKER /FUEL OIL MARKETS

ENVIRONMENTAL & REGULATORY ISSUES IN BUNKER /FUEL OIL MARKETS. INTERTANKO DRAGOS RAUTA PLATTS CONFERENCE NEW ORLEANS, JUNE 2004. 230 (+/-) Members 2,200 (+/-) tankers 165 million dwt Average age: 11.8 years 280 (+/-) Associate Members 25 Staff / 8 Consultants.

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ENVIRONMENTAL & REGULATORY ISSUES IN BUNKER /FUEL OIL MARKETS

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  1. ENVIRONMENTAL & REGULATORY ISSUES IN BUNKER /FUEL OIL MARKETS INTERTANKO DRAGOS RAUTA PLATTS CONFERENCE NEW ORLEANS, JUNE 2004

  2. 230 (+/-) Members 2,200 (+/-) tankers 165 million dwt Average age: 11.8 years 280 (+/-) Associate Members 25 Staff / 8 Consultants The International Association of Independent Tanker OwnersINTERTANKO Oslo London Singapore Washington

  3. Crude oil: 9.6m2003(7.3m 1995) Products: 2.6m 2003 Imports make up63%(a record)of the15.3m(a record) run thro’ U.S. refineries (28% in 1983) INTERTANKO members carry some 60% of the oil shipped into the U.S. U.S. oil imports (bbls/day)

  4. Air Emission from ships: a genuine concern defining & addressing the challenges Regulatory developments; international context of reducing air emissions from ships regional developments and the drawbacks: do they address the problem? do they have any side effects? what are the best alternatives for the future and what is the industry doing CONTENT

  5. Bunker quality and control: who decides what type of fuel the ship should use? foreseeable changes who controls what type of fuel is delivered to ships? who takes the responsibility that new measures are safe and sound? Protection of bunker tanks: a genuine problem regulatory framework the industry contribution CONTENT

  6. Air Emission from ships: a genuine concern defining & addressing the challenges Regulatory developments; international context of reducing air emissions from ships regional developments and the drawbacks: do they address the problem? do they have any side effects? what are the best alternatives for the future and what is the industry doing CONTENT

  7. Air Emission from ships: a genuine concern defining & addressing the challenges Regulatory developments; international context of reducing air emissions from ships regional developments and the drawbacks: do they address the problem? do they have any side effects? what are the best alternatives for the future and what is the industry doing CONTENT

  8. Loss during Loading

  9. A Transportation Loss SolutionThe VOCON Procedure – up to 80% reduced VOC emissions Shut The Valve Here and not Here

  10. Air Emission from ships: a genuine concern defining & addressing the challenges Regulatory developments; international context of reducing air emissions from ships regional developments and the drawbacks: do they address the problem? do they have any side effects? what are the best alternatives for the future and what is the industry doing CONTENT

  11. Air Emission from ships: a genuine concern defining & addressing the challenges Regulatory developments; international context of reducing air emissions from ships regional developments and the drawbacks: do they address the problem? do they have any side effects? what are the best alternatives for the future and what is the industry doing CONTENT

  12. MARPOL Annex VI - Lack of Implementation Excess of Ship Sulphur Emissions - British Channel

  13. DUTCH BORDER ANTWERP

  14. Bunker quality and control: who decides what type of fuel the ship should use? foreseeable changes who controls what type of fuel is delivered to ships? who takes the responsibility that new measures are safe and sound? Protection of bunker tanks: a genuine problem regulatory framework the industry contribution CONTENT

  15. A GUIDE FOR BUNKERING OF SHIPS FOR THE PURPOSE OF ANNEX VI TO MARPOL by INTERTANKO June 2004

  16. Port States retain a register of authorised bunker suppliers Suppliers must provide a BDN and a sample that certify that the fuel meets the requirements for the required quality and for the sulphur content. In the event of a breach of the requirements, the Port State Administration should take appropriate action against the fuel supplier. Port State Administrations are to inform the Flag Administration of any ship receiving fuel that is not in compliance. Port State Administrations are to inform the IMO of all cases where fuel suppliers have failed to meet the requirements. Port State Administrations have to advise the relevant Port State Administration where non-compliant fuel oil was bunkered and supply all relevant information relating to the issue. Regulation 18MARPOL annex VI

  17. The CCAI (calculated carbon aromacity index) content value of the sample with the highest density was 879. Although CCAI is not a specification parameter, at the stated value, medium-speed engines, especially those of older design, may experience ignition and combustion problems; particularly under low and part load operation. (specific for port tranzit) CCAI = f (ρ, ν) CCAI (870 – 890) = ignition problems

  18. Bunker quality and control: who decides what type of fuel the ship should use? foreseeable changes who controls what type of fuel is delivered to ships? who takes the responsibility that new measures are safe and sound? Protection of bunker tanks: a genuine problem regulatory framework the industry contribution CONTENT

  19. Typical Bunker Capacities

  20. Mean Outflow Parameter

  21. Alternative Tanker Arrangements

  22. Urge ratification of Annex VI by more countries One regulation and one set of standards Deliver to ships Clean & Quality Fuels Use scrubbers onshore; do not transfer this operations to ships Give incentives to R&D activity Keep things into their real perspective . . . . Conclusions

  23. ICAO (1999) – Aviation transported 217 billion tonne-miles (combined passenger, freight and mail) corresponding to emission of 13.8 g NOx/tonne-mile Fearnley’s review (2000) – Shipping has transported 22,94 billion tonne-miles corresponding to emission of 0.89 g NOx/tonne-mile (16 times less than aviation) Net contribution vs. service

  24. Thank you www.intertanko.com

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