Cosmo Oil Company starts sale of ECA compliant bunkers
Japanese refiner Cosmo Oil Company, Limited started to supply low sulfur bunker fuel in early October, a company source has told Platts.
The product is available on a spot basis from its Yokkaichi refinery in central Japan, and its Sakaide and Sakai refineries in the west of the country.
It is the second company in Japan to be offering low sulfur bunkers, and follows Sojitz Corporation [TYO:2768] (Sojitz) who in July started to sell low sulfur product from its Kawasaki terminal in Tokyo Bay.
With a maximum sulfur content of 1% by weight, the product meets the standard for the Emissions Control Area (ECA) that came into effect on August 1, 2012 in North America, an event said to have triggered greater demand for the low sulfur fuel in Asia.
No comment was made on pricing or expected sales volume, although market sources were quoted saying that the refiner is planning to sell between 3,000 and 5,000 metric tonnes (mt) per month directly to shipping companies.
The company has been reported to be selling 30,000 to 40,000 mt per month of 3.5% maximum sulfur fuel from the three refineries.
According to the company website, the Yokkaichi, Sakaide, and Sakai refineries have capacities of 175,000, 140,000, and 80,000 barrels/day respectively.
