Norwest Assists Midstream Partners adapt to impacts of IMO 2020
LSFO (and other compliant fuels) coming to a terminal near you!
The International Maritime Organization (IMO) is a specialized agency under the United Nations that sets the regulatory framework for safety, security, and environmental considerations for international shipping. Initially released in 2016, IMO 2020 is a set of standards with the intent to reduce the legal amount of sulfur in marine fuels from 3.5% to 0.5%, effective January 2020. This significant reduction is a continuation of previous cuts made to sulfur limits back in 2012.
Shippers have been preparing for the release of IMO 2020 for years. As you’ll note in the referenced article, several options are available for the shipping industry to comply. One of the lower-cost options is for shippers to use IMO 2020 compliant fuels, and midstream operators are responding. Norwest is having direct involvement with projects where our clients are modifying infrastructure to meet the shipping industry's changing demands.
Low Sulfur Fuel Oil (LSFO), an IMO 2020 compliant fuel, is more easily refined from light sweet crude found in areas such as the Permian Basin and other shale formations. Therefore, global refiners are driving up the demand for US crude exports. Norwest has proudly partnered with several midstream operators to expand terminals in Corpus Christi and the Houston area to support new demand for exporting crude.
Other impacts to midstream industry are detailed nicely in the referenced article, such as balancing storage demands for High Sulfur Fuel Oil (HSFO) with increased quantities of LSFO. Based upon IMO 2020's trajectory, Norwest anticipates increased involvement with midstream operators adapting to its effects. Norwest is excited to provide our industry expertise to assist midstream partners in any projects driven by IMO 2020.
For additional information on IMO 2020 and how it is going to affect midstream operations please visit:
- IMO 2020 And What It Means For Midstream: https://seekingalpha.com/article/4289473-imo-2020-means-midstream
- The Effects of Changes to Marine Fuel Sulfur Limits in 2020 on Energy Markets: https://www.eia.gov/outlooks/studies/imo/
Presented by
Norwest Media Team
For business inquiries:
Norwest Engineering, Inc.
A: 4110 NE 122nd Ave., Suite 207, Portland, Oregon
P: (503) 254-0110
E: Info@norwestengineering.com
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