Transport fuel’s day of reckoning
Gulf refiners wonder how to cope with new green standards for shipping and aviation fuel
A global clampdown on two of the most public scapegoats to the acceleration of climate change—shipping and aviation—is putting Gulf refiners' portfolios to the test. The International Maritime Organisation's (IMO) 0.5% sulphur cap on bunker fuels, set to begin from 1 January 2020, is followed by the International Air Transport Association's (IATA) Carbon Offsetting Reduction Scheme for International Aviation (CORSIA) from 2021. Both are milestones after decades of toing-and-froing between environmentalists and industry. As the Gulf is home to the world's second-largest bunkering hub, the UAE's Port of Fujairah, and is one of the world's fastest-growing aviation hubs, could a shortage of post
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Growth in LNG supply will surpass the rise in demand in 2026 for the first time in years, according to Mike Fulwood, senior research fellow at the OIES, but lower prices are likely to encourage fuel switching and could create more demand on a permanent basis
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Awais Ali Butt, manager for sales and business development at Pakistan LNG Ltd, discusses LNG’s role in energy security across developing, price-sensitive economies, as well as examining trade-offs between buying strategies and the impact of lower prices and policy on import behaviour
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LNG’s technical maturity, availability and price, as well as regulation, have driven its rapid adoption as a marine fuel, yet its future in shipping will depend on transition policies and progress in cutting methane emissions and scaling bio- and synthetic LNG, according to Carlos Guerrero at Bureau Veritas
