Marpol 2018 - How will new environmental regulations affect the base oils & lubricants industry?

06 December 2018

Silke Brand-Kirsch spoke at ICIS Conference

In her talk at ICIS Base Oils & Lubricants Conference, Silke Brand-Kirsch outlined the likely effects of Marpol 2020 on marine fuels, base oils and lubricant formulations.
The new emission limits for marine fuels will increase the costs for shippers and shift the parts of the demand for group I base oil into other groups. HSFO will continue to be the most important marine fuel since shippers plan to invest strongly in scrubber technology, but some will also expand their usage of MGO and other low- or sulphur-free content products. Being more flexible in using different fuel types related to entering ECA to balance at least parts of the cost increase will also lead to in situ blending of lubricants and a growing demand for “one fits all”. There is still no monitoring or enforcement plan in place that will force shippers to comply in open waters which is a major retarder of the implementation.

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