recent and future fuel oil quality - alandia insurance · 2019-05-14 · required fuel oil quality...
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Recent and future fuel oil quality
Maritime Day / Sjöfartens Dag9th May 2019 ; Walter Dekkers
www.ameydemarine.com
Offices VAMNetherlands & Belgium
Netherlands : 16 surveyors
Belgium : 14 surveyors
Sister companies:
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Fuel oil qualitystandard
ISO 8217 standard
� ISO8217; 1987 – 1st edition
� ISO8217; 1996 (2nd) – industrial standard
� ISO8217; 2005 (3rd) – most widely used specification
� ISO8217; 2010 (4th) replaced the 2005 standard (many changes
compared with 2005 version)
� ISO 8217:2012 (5th) replaced the 2010 standard (only change is
hydrogen sulfide H2S test method).
� ISO8217: 2017 (6th) replaced 2012 (many changes; specially clause 5)
Distillate marine fuels
Residual marine fuels
Any fuel oil that is purchased in accordance with ISO8217 standards
is subject to a range of additional conditions extending beyond the test limits imposed!!
ISO82172010
ISO 13739
Procedures / sampling
Annex K
Sampling device
Annex L
Sampling procedure
ISO 4259
Annex L
Test interpretation
95% confidence
single test
Section 5
General requirements
Annex B
supplier QMS
Usuable
conditions
Fuel oil quality standard
› ISO8217; 2005 and 2010 is for about 75% still in use
(depending on region in the world);
› Commercial standard and not mandatory standard;
› Price fuel oil later standards slightly more expensive; fuel
most costly factor nowadays in vessel’s operation;
› Charterers prefer cheaper fuel and Owners better quality;
› Suppliers prefer ISO8217;2005 for various reasons
New standard 2017 (in)sufficient in coveringnew playing field?
› The Scope (Clause 1) has been expanded to
include fuels containing not only “hydrocarbons from
petroleum crude oil” but also from oil sands and
shale, and hydrocarbons from synthetic or
renewable sources.
› Substantial amendments to the general requirements (Clause 5; so-called ‘fit for use’ clause).
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Fuel quality now
What is going on in the bunker
industry? Bad year 2018!
Bunker barge alongside sea going vessel
Still quality issues!
and is the bunker market indeed that bad?
Reasons for more or new type of claims (always ‘something’ can go wrong!)
� Primary goal : earn more money!
• Suppliers/traders blending cheap(er) ‘cutterstocks’?
Contributory factors:
� Changes in environmental regulations;
� Multi-blend products available, partly derived from
renewable and/or alternative sources;
� Transition in processing of petroleum crude;
� Unconventional fuels have been offered to the market;
� Additional chemical screening by laboratories.
Fuel testing (usual)
� ISO 8217 standard parameters
� Unstable fuels / compatibility
� Cat fines or sediments
� Water
� Viscosity / density
� Cold flow properties
� Etc
Investigative testing (more & more)
� FTIR
� GCMS (Gas Chromatography/Mass
Spectrometry); head-space & injection
� ASTM7845
Challenge & change of
investigating operational problems
Alleged contaminants?
› Houston : 4-cumyl-phenol (epoxy resins)
› US Gulf : phenols and fatty acids
› Far East : phenols and fatty acids
› Columbia : high TSP
› General consensus : source cutter stock contain damaging
compounds – possibly waste products from the
petrochemical industry.
Confusion & speculation(on Houston file)?
› Many vessels involved; either engine damage, sludge in
pipework, filters and centrifugal separators; de-bunkering, delays
and disputes.
› Specialists and labs gets involved to identify the source.
› Difficult to pinpoint the cause of problems on each
vessel.
› Different samples and not same analysis results.
› Labs with different analysis methods. Bunker specialists
with different opinions.
Extra screening?What we find & what do we (not) know?
Situation today!
Based on a GCMS Report:
1. Debunkering is forced basis limited understanding of
whether the found species could cause any damage;
2 Debunkering are demanded by owners/technical
operators based on trace levels; again lack of
knowledge and experience.
3 Charterers and Owner are left exposed where the only
option left seems a debunker as ‘try and error’ is often
not considered by Owners (or their H&M Underwriters)
The limits and combinations
of the various compounds in
the fuel leading to operational
problems are often unknown!
How many compounds
are not found during testing?
What are always twomain questions?
1. Is the fuel oil off spec?
Complicated / rely on clause 5?
2. If off spec, can the fuel oil still be
used?
Complicated / rely on specialists?
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Fuel quality 2020
Sulphur cap
Low sulphur fuel oil in 2020
Quality – Stability - Prevention
Quality : Unknown
Stability : Unknown
Prevention: Impossible
Now in claims against 10
years ago?
Total 21 cases in 2008
1. Aluminium / Silicon (catfines) above limit
2. Sulphur content above limit
3. Water above limit
4. Density too high
Total 27 cases in 2018
1. Chemical contamination
2. Sulphur content above limit
3. Total sediment (TSP)
4. Aluminium / Silicon (catfines) above limit
0.5% VLSFO’s for 2020?
› This fuel already has a name - Very Low Sulphur Fuel Oil! VLSFO
› The principal purpose of these fuels will be to provide a lower cost
alternative to 0.5% MGO.
› But we don’t know for sure how they will look - it will be likely mid-
2019 before we see these fuels in the market.
› We can assume, like ULSFO’s (<0.1%):
› these are likely to be blended products, with huge variances in approach, region to
region, batch to batch.
› with more sulphur content to play with, potentially allows higher residual-based
materials may be used
› higher density, viscosity and metal content.
› even more risk of instability and incompatibility
› segregation of fuel types will be more important than ever
Technical ‘challenges’ on board
Barrels require forced “Jacking” to remove
Impact environmentallegislation
› Environmental legislation has more impact on fuel quality
than any other potential cause or effect.
› Decreasing sulphur limits have led to
› Development new fuel types & grades, new lubricant oils
› Increased blending with cutter stocks, diluents &
additives
› Need for fuel management and monitoring of fuel quality,
› Revisions of the marine fuel quality standard (ISO8217)
Fuel quality 2018 (source VPS)
In 2018 VPS released
53 “Bunker Alerts”
(2017 : 58 Alerts)
Fuel quality –distillates
The perception has always been distillates are “problem free”
› Increasing issues with:› Flash Point – Blending with volatile components
› Cold-Flow Properties – PP, CP, CFPP, waxing of fuel.
› As demand increases, quality issues will
become more common
› Fuel change-over, low viscosity, poor
lubricity, reduced stability, wax
precipitation at low temperature, FAME
or Microbial contamination.
Fuel quality –residual fuels
› At present residual fuels the largest
volume fuel used on board. Generates
the largest number of technical issues.
› Most common issues are high cat fines,
sediment, sodium and density.
› Fuels may achieve the ISO8217
specifications, but can still cause
operational problems, due to the
presence of materials not specifically
covered by ISO8217.
Where do contaminants
come from?
› Fuel blending
› cutter Stocks to achieve sulphur specifications
› side streams of ethylene crackers sold as blend stock
› refinery products / distillation residues
› visbraking residues, thermal cracked residues
› Bio-Materials
› Heating fuels
› FAME
› Bio-Waste
› Cross-contamination in supply chain
› Waste chemical disposal stream / ULO
1. Original oil source and refining techniques
also influences fuel quality;
2. 2020 will see an increase in types of fuel
and wider use of diluents, cutter stocks,
additives, blending material etc.
3. Above can alter the fuels chemistry,
potential destabilisation effect, or have a
damaging side-effects.
4. Laboratories are using increasingly high-
end analytical techniques
Current quality issues –
a sign of things to come?
Prevention by the bunker industry
› More sampling and analysis in supply chain (exceeding test
requirements of ISO8217)
› More transparency (applying Block chain) of all parties (incl.
clarity and traceability supply chain and blending),
› More data collection & knowledge sharing, accessible to all,
› Bunkering license with registration number and audits by
independent body like Singapore?
› Best practice guidance for suppliers of IBIA to be followed.
Prevention by Owners/Operators/Managers (1)
› Deal with reputable suppliers & traders only;
› Consider the Bimco bunker contract instead of Supplier’s unfair terms
and conditions;
› Check Charter Party carefully for correct clauses with regard to
required fuel oil quality and new rules (see BIMCO or your P&I);
› Promote to buy as per latest fuel quality standard (now is basis
ISO8217: 2017);
› Train engineers to follow up the bunker procedures with regard to
proper sampling in accordance with the procedures given in ISO13739,
witness sampling barge, signing labels and BDN as well as proper
sealing the samples;
Prevention by Owners/Operators/Managers (2)
› During bunkering realize that lines are cleared by draining back into
the tank(s) when different Sulphur grades are delivered by same
barge (first load lower Sulphur grade FO).
› Follow up fuel change-over procedures means knowing what is
bunkered, have adequate training of engineers with regard to load,
viscosity, temperatures, timing, mixing etc.. Watch out for different
properties of these new compliant VLSFO’s.
› Storage considerations:
› No mixing of different bunker deliveries on board;
› Dedicated tanks and systems as much as possible;
› Drain settl / serv tanks twice a day to remove water, incl. right
temp;
› Heating that temperature is sufficient above pour/cloud point;
Prevention by Owners/Operators/Managers (3)
› VLSFO’s may be quite solvent in nature and tanks currently
storing HFO will require inspection, and probably some
cleaning (to remove impurities like sediment and catfines).
› Don’t start using the fuel before analysis results are known;
› Follow best practice guidelines of P&I clubs and Hull &
Machinery Underwriters
› SIP’s (Shipboard Implementation Plan) to mitigate risks and
minimize disruption
Summary (Heading towards 2020 & Beyond)
› Wider range/choice of fuels available with many technical
considerations.
› Today, we are seeing a major increase in fuel quality issues, and their
complexity. This will likely continue and may worsen.
› We can expect many more issues with contamination from fuel
production and blending but unclear to what extent.
› Enhanced analysis by means of forensic techniques are more and more
considered which lead to increase on claims, or at least to ample
discussions whether or not fuel is fit for use.
› Ship Owners / Managers should take preventive measures on board.
Quote by one of the major oil companies
“with so many different types of fuel potentially set
to enter the bunker market, vessel operators are
rightly concerned about stability, compatibility and
quality issues, such as elevated levels of cat fines.
It will therefore be more important than ever for
operators to follow best practice when bunkering
compliant fuels, including using laboratories to test
fuel samples for potential issues”
Quote by BIMCO
› BIMCO has called for more accountability from bunker
suppliers in order to prevent fuel contamination.
› “The risk that the new low sulfur fuel is not of the
quality that it should be, and that it will cause
operational problems, is bound to increase with the
new sulfur regulation” said deputy secretary-general of
BIMCO.
› “The suppliers do not know yet what they will look like
or what blending components will go in there. That is a
concern,” he said as blending is expected to increase
significantly.
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