13SEP2019 - NEWS - S.Korea's SK Trading signs to supply VLSFO to shippers ahead of IMO -official

SK Trading International (SKTI), trading arm of South Korea’s SK Innovation, has signed six-month contracts with some shippers for the supply of very low sulphur fuel oil (VLSFO) starting from the fourth quarter, a company official said on Thursday.

Demand for stable low sulphur marine fuel supplies is rising as the global shipping industry prepares for the International Maritime Organization (IMO)’s January 2020 sulphur cap of 0.5% on marine fuels, a drop from 3.5% currently.

Shippers will have to comply with the new regulations by switching to lower sulphur fuels - such as low sulphur fuel oil (LSFO) or marine gasoil (MGO) - or by installing scrubbers to clean the emissions of the higher sulphur fuels.