SEOUL, Jul. 7 (Korea Bizwire) — SK Trading International Co. (SKTI), a subsidiary of South Korea’s largest refiner SK Innovation Co., said Sunday it plans to quadruple its offshore low-sulfur fuel supply business next year to meet increased demand following strict environmental regulations by the International Maritime Organization (IMO).
SKTI said it aims to increase its oil blending capacity from an average 23,000 barrels per day to 90,000 barrels per day in 2020.
Once its affiliate SK Energy Co.’s vacuum residue desulfurization (VRDS) facilities begin full operation next April, its low-sulfur fuel supply can reach up to 130,000 barrels per day, SKTI said.
SKTI has been involved in the oil blending business since 2010, supplying low-sulfur fuel onboard a tanker after processing half-finished product.
The company said its business is expected to take a big leap on the back of the IMO regulation, which mandates ships lower the sulfur content in marine fuels from 3.5 percent to 0.5 percent starting from 2020.
Citing International Energy Agency (IEA) data, SKTI said demand for low-sulfur fuel oil (LSFO) and marine gas oil (MGO) will surge next year, with daily demand for the former to increase from 100,000 barrels to 1 million barrels.