[PPT] - global sulphur cap Franco Del Manso UNIONE PETROLIFERA 10th PowerPoint Presentation

SLIDE 1

30^ Annual Coordinating Meeting of Entity Stockholders

“The new fuel in compliance with the IMO 2020 global sulphur cap”

Franco Del Manso – UNIONE PETROLIFERA 10th September 2019 – Rome, Italy

SLIDE 2

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Unione Petrolifera – Italian Oil Industry Association

UNIONE PETROLIFERA

2

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Italian refining system

3

SLIDE 4

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Logistic infrastructures – Main depots and terminals

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Depots and terminals of petroleum products (including

lubricants) and bio, both fiscal and commercial, with a capacity above 3000 m3 (Unione Petrolifera members only)

Many others depots and terminals are owned by non

member companies

4

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New IMO bunker fuel 0,5% max. sulphur content

UNIONE PETROLIFERA

5

Re

Refining ining industr try approach ch:

Th

The ref refini ining ng ind indus ustr try wil will sup supply ply the the IMO MO bunk unker er with with a num umber ber of

f alte

alternativ rnatives es - Marin arine diesel, diesel, heavy avy distil tillat lates, es, residual dual fuel oil

Each refin

iner ery will make av availa lable ble the fuel on

n the basis of
f its present

ent configu iguratio ation

No

No new plants ts are planned ed by by 2020 20, specif cificall ically designed gned for these fuels

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Evolution of World bunker fuels demand

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Based on the latest news on scrubber installations and LNG development, the 2020 world bunker

fuels market can be estimated as follow:

Marine bunker fuels 2017 2020 Marine diesel MGO 0,1 % sulphur 40 – 50 Mton 40 - 50 Mton Marine diesel MGO > 0,1 % sulphur 30 – 40 Mton

LNG

6 – 8 Mton 10 - 15 Mton Bunker IFO 380/IFO 180 3,5% sulphur 150 - 160 Mton 60 - 80 Mton (partially scrubbed) Bunker IMO 0,5% sulphur

150 - 200 Mton

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Italian marine fuels market

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7

Th

The It Itali alian ma marine rine bun unker er mark arket et in in 20 2018 18 was was about bout 3.2 mi mill llion ion tons, ns, of

f which

hich ar around und 470,000 000 tons were distil tillates lates

Th

The mos

st releva

elevant nt por

rts

ts in in this his mark arket et are are Genoa, Genoa, Livo Livorno rno, Ci Civit vitavecc vecchia, hia, Nap aples, les, Augusta, a, Venice and and Tries este te.

Till

ll 2020 20 this bunker market config igura uration tion will not change

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New IMO bunker fuel 0,5% max. sulphur content – Italian situation

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Our 2020

20 forecas cast sees the bunker consumptio ption grow to to 3.3 Mton.

Ships

ps equipped pped with scrubber bers or

r powered

ed by by LNG will ll continu inue to to be be margina nal

Th

Theref erefor

re large

arge quantities quantities of

f bunk

unker er fuel uel wit with 0.5% sulf ulfur ur wil will hav ave to to be be ma made de ava vail ilable ble in in all all national

nal ports nex

ext yea year

Marine ine bunk nker er fuels

(kton

n)

2018 2020 2020 2025 2025 2030 2030 Marine ine diesel el and d Bunker er 0,5% % sulphur phur 474 2960 2960 2950 2950 3050 3050 Bunker er 3,5% 5% sulphur phur 2.708 08 300 300 500 500 500 500 LNG LNG

200

200 400 400 TOTAL AL 3.182 82 3.260 60 3.650 50 3.950 50

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Logistics implications

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9

Based

ased on

n the

he IM IMO deci decisi sion,

n, the

the swi switc tch fr from

m hig

high sulf sulfur ur to to low low sulfur ulfur wil will hav ave to to tak ake pl place ce over vernight night. All All ope perator ators wil will prepare repare the hems mselves elves ad adequa equately tely but ut th the im implicati plication

ns both

both in in ter terms ms of

f logis

logistics tics an and distrib tributio ution will be be consi sider erable ble

Th

The sim simult ultan aneou

us presence

resence of

f th

three ee pr products ducts (0.1%, 0.5% and nd 3.5%) wil will imp impose

se additiona

additional in inve vestm tment ents in in lo logis gistics tics bot both to to accom ccommod modate ate all all three hree products

ducts in

in coas

astal

al deposi eposits ts and nd to to ensur nsure the import/e /expo xport operation tions

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Quality problems to address on IMO bunker fuels

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CE

CE Delf lft stud tudy found und there ere wouldn’t be be shor

rtages

ges of

f IMO bun

unker er fuel els glob

ball

lly

Anywa

yway, fuel el formula mulati tion

ns proje
jected

cted by by CE CE Delf lft va vary wid idely ely acr cross

ss World

ld Re Regions ions

This

is coul uld lea ead to to the foll llowi

wing issues

sues:

Wide va

variati tion in in fuel pre-heat temper erature ture prior

r to

to injecti ction when using fuel deliveri veries es with va varyi ying viscositi sities es

Risk of
f incompati

tibili lity ty - In In many cases it it would not be be advisable le for ships to to commin mingl gle fuels from differe erent regions

ns

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The ISO activities on IMO bunker fuel specifications

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11

ISO TC

TC28 28 SC SC4 WG WG6 is is in in charge to to deve evelop the new ISO 8217 Specif ifica ication tion on

n IMO bunker fuel
Due

ue the he time time cons

nstr

traint aint to to adopt dopt a new new IS ISO 82 8217, WG WG6 agreed agreed to to develop develop a PAS AS (P (Pub ubli licly cly Av Avail ailable ble Sp Specif ecificatio ication – IS ISO PAS AS 23263 23263) to to prov

vid

ide wit with a qu qualit ality ref eference erence by by 2020

2020. The PAS

AS has has been been approved

ved by

by ISO in in July and and will ll be be publis ished hed in in Septemb ember er this yea year

IS

ISO PAS AS 23 23263 263 sha hall ll be be use used in in co conjunct njunction

n wit

with IS ISO 82 8217:20 2017 which hich cov

ver

ers marine arine fuel uel oil

ils

delive elivered red to to the he mar market et toda

day inclu

includin ding 0.10 10 % S fuel fuel oils,

ils, hi

high gher S fuel fuel oils

ils, as

as well well as as 0.50 50 % S fu fuel el

ils. The PAS will

ll not introduce

duce new specif

ifica ication tions nor an an additio tiona nal table le for 0.50 50 % S fuels.

Th

The PAS AS wil will pr provi vide de ge gener neral al consi consider deratio ations ns that that appl apply to to all all 0.50 50 % S fuels, els, incl includ uding ing S co content ntent and and flash ash point,

int, and

nd techni echnical cal asp aspects ects on

n ki

kinem nematic atic viscosit viscosity, col cold flow low pr proper

perties,

ties, ig ignitio nition characte cteristi ristics, s, catalys lyst fines, es, and and stability ility that might apply to to specif ific ic fuels.

SLIDE 12

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Joint Industry Project – Guidance on the technical and safety implications of the new 0.50% S fuels

UNIONE PETROLIFERA

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Section

ion 1: Guidanc dance on

n fuel charact

cteris risti tics cs and and prope

perties

ties

Th

This sec secti tion un underl rlines es the he imp mportance ance to to un understand nd th the char harac acteri eristi tics cs of

f the

he fuel uel as as suppl

upplied. Inf

nformat rmation

n is

is provided

vided on
n th

the pot

tent

ential al va vari riability ty of

f max
max. 0.50

50%-sul sulphur ur fu fuel els and nd

n
n key

key fu fuel el prope

perties

ties: col

ld flow
w prop
perti

ties es, stability ty, vis viscos

sity

ty, acid nu numb mber er, flash shpoint,

int, igniti

gnition quality ty and and catalyst fines.

Section

ion 2: Guidanc dance on

n the suppl

ply of

f max. 0.50

50%-sulph ulphur ur fuels

Des

Descr cribes es the the ne need ed for fuel uel suppl upplier ers to to hav have in in place ce a robust Qua uality ty Ma Mana nageme gement Sy System em to to control

l the

the quality ty of

f the

the blend stocks used

Section

ion 3: Guidanc dance on

n the storag

age, e, handling ndling and and safe use of

f 0.50

50% S fuels

Th

This se sect ction

n provi
vides

es inf nformat rmation on

n pot
tential

ntial fue fuel-relat related sa safe fety ty and nd oper erat ationa

nal iss

ssues, ues, and nd me meas asures res th they ey can an take ake to to preve event nt an and mi miti tigat ate su such iss ssues

ues. Pr

Provi

vides

es al also guidanc guidance on

n

unaccep eptable fuels, s, off specifica cation fuels and and non non-co comp mpliant nt fuels

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Potential issues in IMO 2020 bunker fuel stockholding

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When

When the the 0.50 50%-sulp ulphur ur ma marine ne fuel fuels will will be be inclu nclude ded in in the the em emer ergen gency cy oil

il stocks

tocks some some me measure sures ar are recom

mmen

ended ed to to preven vent futu ture re issu sue

A comp

complete lete fue fuel qu qualit lity ch charact aracteriz erizatio ation is is re require uired, d, in in par partic icul ular ar for

r the

the mo most vari ariable ble ch characteri aracteristics tics of

f th

the pr propo pose sed bunk bunker ers, s, suc such as as vis viscosit cosity, de densit sity, pour pour point point and and mi micr cro car arbo bon re resi sidu due (MC (MCR). These These inf nformat

rmatio

ion are essen sentia tial when en the bun unker er deli livered ered will ll be be mixed ed with th anoth

ther

er fuel el

The

he main main iss issue ue is is in in fact fact co compat mpatibi bilit lity and and two wo fuels fuels that at have ve wi widely dely dif differing ring characteri aracteristics tics of

f viscos

iscosit ity, densit density, pour pour point point or

r MCR,

MCR, wo would ld sug ugges gest tha hat the they are are less less li likely ely to to be be com compatib tible

le. Fuels

uels th that at hav ave gen genera erally lly simi milar cha haracterist cteristics ics are more likel ely to to be be compat patibl ible.

This

his characteri aracteristic tic ass assess ssme ment does does not not rep replace ace the he nee need to to carr carry out ut a phy hysic sical al compat compatibi bilit lity test test at at the ex expe pected cted comm mmingl ingling ing rati tio,

, befor
re mixin

xing.

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Potential issues in IMO 2020 bunker fuel stockholding - best practice

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14

Do

Do:

Avoid
id mixin

ing bunker er fuels ls: if if possible, sible, recei eive ve new fuels ls into to empty ty tank( nk(s)

Ca

Carr rry out

ut the

the spot spot test test fi first on

n the

he proposed

posed mixture

mixture if if you you arrive rrive in in por port wit withou hout an an em empty pty tan ank to to load

ad in

into to; if if tha that fai ails, ls, take advi vice and/or d/or confirm irm with th the TSP test to to confirm irm whethe ether there re are potential tential issues ues if if produ

ducts

ts are mixed xed.

Purcha

hase se fuels ls with th similar ilar visco cositi sities es and and densities nsities where ere possibl sible

Do

Do not:

Mix a resid

idual al fuel oil il with ith a marine ine dies esel el oil (MDO) or

r marin

rine gas oil (MGO).

Mix

ix fuel uels with with gr greatl atly di diss ssimilar imilar vi viscosity sity, den densities sities, MC MCR or

r pou

pour poi point; di diss ssimilar imilar cha haracter teris istics tics may pr provide

vide an

an early early indi dicati cation

n of
f possible

sible incomp

mpatibilit

atibility.

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The IMO bunker fuel stability/compatibility

UNIONE PETROLIFERA

15

To

To add ddre ress ss the he po potent tential al risk isk of

f in

inco compati mpatibilit bility wh when com commingli ngling ng fue uels ls havi ving var aryi ying ng bl blend formulat

rmulatio

ion, n, the he ISO SO wor workin king gr grou

up con

conducte ucted a test test pr progra

gram to

to in inves vestiga igate whi which te test method ethods can an provi vide de fur urther her and and consi nsisten tent informat

rmation

ion on

n the stabili

ability ty and nd poten tentia tial ins nstabi abilit lity of

f fuels

els or

r mixtu

xtures res of

f fuels

els.

The foll

llowi

wing test methods

thods can be be used ed to to eva evaluate stabil ability ity and nd compat patibi ibilit lity of

f fuels

els:

ASTM D715

157 (S (S-va value - Rofa Analyzer) zer)

ASTM D7112 (P

(P-va value - Porla Analyzer) zer)

ASTM D7060

7060 (FRmax and and Po Po - Zematra tra Analyzer zer)

These

hese test test meth methods

ds allow

llow the he determin eterminat ation ion of

f parame

arameter ters th that rel relate ate to to the the sta stabili ility of

f the

the asp sphalte altenes nes in in th the fuels els and nd the abi bilit lity of

f the fuel

el oil

il matr

trix ix to to keep the asph sphaltenes enes in in solut lution ion.

SLIDE 16

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The IMO bunker fuel stability/compatibility

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The IMO bunker fuel stability/compatibility

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The

The existi xisting ng spot pot tes est and and tot total al sedi sediment ment tes tests ts remain remain the he fir irst tes tests ts to to do do to to ob

btain

ain informatio information on

n the

the stabilit bility and nd compatib tibilit ility of

f fuels

els.

More

More de detail tailed inf nformatio

rmation on
n the

the use se of

f tes

test me methods thods rel related ated to to stabil ability ity and and com

mpat

atibil ibility ity will will be be in includ uded in in a CIMA MAC guideli ideline ne docu cume ment entitled titled:

“General guida

idance ce in in marine arine fuel el hand andling ling in in connection nnection to to stabili ability ty and nd compatib tibilit ility”.

The

The gu guidan ance ce will will be be rele relevant nt to to al all fue uel gr grade des and and will will al also so des descri cribe be tes tests ts th that ca can be be use used to to che check ck stab tabilit ility and nd compatib tibilit ility and nd the limita mitations tions of

f those
se tests

ts

The

The revi visio sion of

f ISO

SO 8217:2017 will will be be initi initiate ated af after ter publ blic icat ation

n of
f the

the PAS and and wi will con consid ider er the the inf nformat

rmation

ion incl clude ded in in the PAS and nd feed edbac ack from

m the ind

ndust stry on

n the use of
f 0.50

50 % S fuels els.

SLIDE 18

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