0 1. What is fuel oil?
Fuel oil is a kind of refined oil, which is a heavy residue product separated from crude oil after gasoline, kerosene and diesel oil during petroleum processing. Fuel oil is mainly composed of petroleum pyrolysis residue and straight-run residue, which is characterized by high viscosity and contains many non-hydrocarbon compounds, resins and asphaltenes. Fuel oil is mainly used in oil refining and chemical industry, transportation, construction and metallurgy. At present, boiler oil and power generation oil are greatly reduced, while the market demand for marine oil shows a steady growth trend.
02. What do low-sulfur fuel oil and high-sulfur fuel oil mean?
In recent years, China has been steadily promoting various environmental protection policies in order to implement the overall requirements of the country "to fight the tough battle against pollution and win the blue sky defense war". In response to the environmental protection requirements of the International Maritime Organization, China began to gradually implement the ship emission control zone in 20 16, strictly control the air pollution emissions from ships, and actively coordinate and introduce relevant supporting measures to ensure the supply of low-sulfur fuel for compliant ships. At present, according to relevant international and domestic regulations, international ships should use fuel with sulfur content not exceeding 0.50%m/m, and ships with exhaust gas purification systems or other measures that can achieve the same or better air pollution reduction effect are allowed to use fuel with sulfur content higher than this standard.
According to the sulfur content, marine fuel oil can be divided into high sulfur fuel oil (HSFO), low sulfur fuel oil (LSFO) and ultra-low sulfur fuel oil (ULSFO). The sulfur content of high sulfur fuel oil is above 3.50%m/m or even 4.50%m/m, low sulfur fuel oil is generally below 0.50%m/m, and ultra-low sulfur fuel oil is generally 0. 10.
The fuel oil futures contract of Shanghai Futures Exchange (hereinafter referred to as the last issue) deals with RMG380 marine fuel oil with sulfur content not more than 3.50% m/m, and the low-sulfur marine fuel oil futures contract of Shanghai International Energy Exchange Center (hereinafter referred to as the Energy Center) is subject to the low-sulfur marine fuel oil with sulfur content not more than 0.50% m/m..
03. What is the production process of low sulfur fuel oil?
Marine heavy oil, through a certain process, detects the product characteristics of various petroleum fractions, and prepares them according to national standards or international standards for use by the main engine of the ship. In the era of low sulfur, the original production process needs to be adjusted. At present, there are three main methods to produce low-sulfur fuel oil: one is to produce low-sulfur crude oil by distillation; Secondly, low-sulfur residual oil and high-sulfur heavy fuel oil are blended for production; Thirdly, the sulfur content in high-sulfur residue is reduced by residue processing device to produce marine fuel.
International fuel oil market
04. What is the global production situation of marine fuel oil?
The main producing areas of global fuel oil are concentrated in the Middle East, Russian Federation, South America, China and other regions, with an annual global output of about 500 million tons, of which 300-400 million tons can be traded in the open market. In recent years, the global fuel oil supply has been in a state of continuous decline, mainly due to the upgrading of refining equipment in global refineries, the development of fuel oil in the direction of deep processing, and the gradual improvement of secondary processing capacity of refineries, resulting in a decline in fuel oil output.
05. What is the global consumption of marine fuel oil?
Among modern modes of transportation, shipping is the most important logistics mode in international trade, accounting for about 90% with the development of ship technology and the advantages of low transportation cost and large loading capacity. The 20 19 Review Report on Global Maritime Development shows that the global maritime trade volume has reached11000 million tons, and the total global fleet capacity is 95,402 ships,1970 million dwt. In recent years, the consumption of marine fuel oil has reached 280 million tons, and it is expected that the consumption scale will stabilize at around 300 million tons in 2020.
There are four major offshore oil markets in the world, namely, Asia (Singapore, China, South Korea and Japan), Europe's ARA (Amsterdam, Rotterdam and Antwerp), the Mediterranean (Fujairah) and America (the east coast of the United States). Among them, Singapore is the world's largest consumer of marine fuel oil, with an oil supply of 47.46 million tons in 20 19, followed by Northern Europe and the Middle East. 20 18 Zhoushan, Zhejiang, China became the largest refueling port in China, and ranked among the top ten refueling ports in the world for the first time. In 20 19, Zhoushan bonded marine fuel oil supply reached 4 102700 tons, making it the eighth largest refueling port in the world.
06. How about the global fuel oil trade?
On the whole, the global supply and demand of fuel oil is surplus in Europe, Russia, the United States and the Middle East. With the acceleration of economic globalization, the Asia-Pacific region has gradually become a new economic growth center and the biggest resource gap of fuel oil, and the gap is still expanding. At present, the main cargo flow of fuel oil in the world is exported from Europe to Singapore and the Gulf region. The Middle East exports to Singapore and Northeast Asia; Mexico and Latin America (including Mexico, Venezuela, Brazil, etc. ) are exported to Singapore and Northeast Asia.
07. Why is Singapore the largest fuel oil trading market in the world?
With its superior geographical location, excellent port operating conditions, huge market demand, long-term development of oil trading market and standardized and flexible financial management system, Singapore has become the fuel oil trading center in Asia, attracting almost all multinational oil companies and global oil trading companies to participate in the local fuel oil market. The fuel oil component resources produced in other parts of the world flow to Singapore, and the finished products are sold after blending.
At present, Singapore's fuel oil market has developed into the largest fuel oil blending base and oil trading distribution center in the Asia-Pacific region. Fuel oil is one of the most active varieties of Platts oil in Singapore, and it is also one of the most active varieties of paper goods in Singapore.
What is the impact of IMO global sulfur restriction order on marine fuel oil market in 2008 and 2020?
With the implementation of the International Maritime Organization (IMO) global sulfur restriction order in 2020, all countries have actively responded and introduced corresponding measures, and the upstream and downstream enterprises in the industrial chain have also studied and adopted various countermeasures in advance. According to the analysis of various institutions, there are three major trends in ship fuel in the future:
One is to use low-sulfur fuel oil or marine diesel (MGO) with sulfur content not higher than 0.50%m/m/m, and using low-sulfur heavy ship combustion is the most widely selected scheme at present, with high comprehensive economy. Although the production cost has risen, most ships do not need to be rebuilt.
Second, ships should install tail gas desulfurization facilities and continue to use marine fuel oil with sulfur content not higher than 3.50%m/m/m, and shipowners can continue to use low-cost high-sulfur fuel oil, but additional equipment investment is needed. At the same time, the wastewater and waste liquid generated by desulfurization facilities need to be treated. At present, China and the United States, Singapore, Germany, Belgium, Norway, United Arab Emirates and other regions clearly stipulate that international sailing ships are not allowed to discharge the washing water of the open-loop tail gas purification system locally, while Japan, South Africa and other countries are allowed to discharge the washing tower water of the open-loop desulfurization.
Third, choose new energy sources such as liquefied natural gas (LNG) as the power fuel for ships. At present, the number of LNG power ships suitable for ocean navigation is small, the supply facilities are incomplete and the fuel cost is high.