05NOV2019 - NEWS - US refiners increase HSFO throughput as IMO 2020 nears

In addition to maximizing diesel production and running lighter, sweeter crudes, US refiners are looking to blendstocks and feedstocks as they create and market their own low-sulfur marine fuel ahead of 2020.

This switch from 3.5% sulfur to 0.5% sulfur in bunker fuel at the start of the new year, as mandated by the International Maritime Organization, has created consternation for some refiners and opportunity for others, particularly those with high-complexity coking plants along the US Gulf Coast.

As refiners look to blend and brand their own marine fuel for shippers ahead of IMO 2020, they are looking to all parts of the barrel, including blendstocks and feedstocks, giving refiners with cokers yet another advantage over less-sophisticated plants.

One fuel they are looking at is HSFO, today’s bunker fuel. HSFO, or residual fuel, production has been declining in the US, but it remains a byproduct of less-sophisticated refineries. During the four weeks ended October 25, production averaged 344,000 b/d, according to US Energy Information Administration data, with some going to the export market. EIA data showed 4.4 million barrels were exported in July 2019.