European ports expanding low sulfur fuel oil shortage capacity.

European ports have been expanding their low sulfur fuel oil storage capacity ahead of IMO 2020 - a lower sulfur cap on marine fuels, mandated by the International Maritime Organization, from January 1, 2020. The global cap on sulfur content in bunker fuel will be cut to 0.5 percent from 3.5 percent, and most bunker fuel demand was expected to shift from high sulfur fuel oil to very low sulfur fuels or marine gasoil.

The Scottish port of Aberdeen recently became the latest harbor in Northwest Europe to announce additional storage capacity to ensure supply of compliant 0.5 percent products. Peterson Energy Logistics invested GBP3 million ($4 million) into a new 4,000 cu m tank for storing...