South Korea to start supply of 0.10% sulphur fuel oil

South Korean refiners plan to offer fuel oil with a sulphur content of less than 0.10%, according to sources.

Staff from SK Energy and GS Global Corp, an affiliate of GS Caltex, told Bunkerworld they would be able to provide the low sulphur fuel oil (LSFO) product from December onwards.

A Seoul-based trader said the 0.10% LSFO would be a residual grade with viscosity similar to RMG 380 and not a distillate fuel.

He explained that South Korean refineries had already been producing 0.10% LSFO but that the grade had not been supplied to the bunker market.

Deliveries of 1.00% sulphur LSFO from South Korean bunker suppliers, in the mean time, are expected to be phased out during the next two months.

GS Caltex is expected to stop supplying 1.00% LSFO in the week ending November 8.

SK Energy will halt supplies of 1.00% LSFO from the middle of December.

A Hyundai Oilbank source said the refiner would stop supplying 1.00% LSFO "possibly early December," or when demand falls.

The sulphur limit for bunker fuel used within emission control areas (ECAs), currently at 1.00%, will be lowered to 0.10% from January.

Demand for low sulphur product in South Korean ports comes from vessels heading into the North American ECA.

Most international shipping operators are expected to use low sulphur marine gas oil (MGO) to meet the new ECA requirements.