HES Wilhemshaven
Shell and bulk-handling company HES International are
planning to restart an oil refinery in Germany to produce low-sulphur
bunker fuel ahead of new regulations going into force next year,
Kallanish Energy learns.
The International Maritime Organization (IMO) approved the ban on
high sulphur fuel oil (Hsfo) for vessels beginning in 2020. The
International Energy Agency (IEA) expects a shake-up in the industry, as
demand for Hsfo will fall from 3.5 million barrels per day (Mmbpd), to
1.4 Mmbpd.
HES is reinstalling the vacuum distillation unit (VDU) at
Wilhelmshaven Tank Terminal, in order to produce low-sulphur bunker
fuels to distribute as an alternative to Hsfo. Reuters reported
they reached an agreement with Shell, under which the oil company
provides the feedstock and receives the final product.
The terminal is located on Germany’s North Sea coast and is the
largest independent liquid bunker terminal in the country. It has a
45-million-cubic-foot capacity and it holds several products, such as
crude oil or liquefied petroleum gas.
Shell and HES said via email they aren’t commenting on the project.
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