Maersk Signs Compliant Fuel Deal with PBF Logistics
Danish shipping major Maersk has signed an agreement with PBF Logistics, which would deliver 10% of its annual fuel demand ahead of the International Maritime Organization’s (IMO) 2020 global sulphur regulation.
Under the deal, Maersk would source and PBFX would process crude oil at CPI Operations LLC, a PBF Logistics LP terminal facility in New Jersey, United States. This would enable Maersk Oil Trading to supply IMO 2020-compliant 0.5% marine fuel to its customers on the US East Coast.
Annual production will be around 1.25 million metric tonnes (mt), the equivalent of around 10% of A.P. Moller – Maersk’s annual fuel demand.
“This processing agreement forms a cornerstone in Maersk’s fuel sourcing strategy for the IMO 2020 sulphur cap,” Niels Henrik Lindegaard, Head of Maersk Oil Trading, said.
“The vast majority of our fleet will comply with the regulation through use of compliant low sulfur fuels. With the capability to produce and store compliant low sulfur fuel on the U.S. East Coast we take control of the fuel supply in a key maritime hub for us. We will continue our drive to ensure compliance in all geographies come 2020.”
In August 2018, Maersk and Vopak signed a leasing agreement for storage of 2.3 million mt 0.5% compliant fuel, equivalent of around 20% of Maersk’s annual fuel demand, at the Vopak Europoort Terminal in Rotterdam.