Uniper’s Ulsfo facility in Fujairah despatch cargoes to Europe, Asia

dubai — Supplies of ultra-low-sulphur fuel oil (Ulsfo) from the UAE are becoming commonplace as Uniper ramps up production at its Fujairah facility, commissioned since the start of the year.

The Germany-based energy trader has currently chartered at least one aframax vessel, the Daytona, carrying Emission Control Areas (ECA)-compliant Ulsfo from Fujairah to Europe, a trading source with knowledge of the matter told Reuters. He declined to be identified as he is not authorised to speak to the media.

Reuters shipping data shows the Daytona, now sailing through the Mediterranean Sea, loaded its cargo on March 31 in Fujairah and is due

0.5% sulphur emissions of fuel content from shippers would be allowed by 2020

to arrive in Gibraltar on April 16.

The UAE, home to the world’s second-largest bunker and fuel oil trading hub in Fujairah, is an important producer of fuel oil but typically supplies medium- and high-sulphur grades. Those are in greater supply than Ulsfo, which has a sulphur content of up to 0.1 per cent.

Demand for very low-sulphur bunker fuels is set to rise after the International Maritime Organisation in October set regulations to cap global sulphur emissions from shippers at 0.5 per cent of fuel content by 2020 versus the current 3.5 per cent.

Uniper’s recently commissioned crude processing unit in Fujairah has an Ulsfo production capacity of about 300,000 tonnes per month and is set up to produce fuel oil with a maximum sulphur content ranging from 0.1 per cent to 0.5 per cent.

Uniper spokespeople did not respond to requests for comment on the operations of its Fujairah facility.

Two separate trading sources, however, said it was unlikely that the facility was running at full capacity given current estimates of Ulsfo export volumes from the Arabian Gulf oil hub. — Reuters