Delegates at LNG2019 discuss preparations for IMO 2020
Tighter emissions rules for international shipping could create new long-term opportunities for LNG. As a cleaner burning fuel, LNG meets the requirements of the International Maritime Organisation’s (IMO) new limitations on airborne sulphur dioxide emissions, which come into place on January 1st, 2020. Now less than 12 months away, the new rules will cap sulphur content of fuel at 0.5 per cent, a huge reduction from current limits of 3.5 per cent.
This is a big shake-up across the value chain: for shipowners, who will bear the upfront costs of compliance; for consumers, to whom those costs may be passed; and for the international upstream and downstream industries as they strive to meet demand for low sulfur crudes and face falling margins for high sulfur heavy crudes.