India’s largest refiner has stated its ambition to produce over 1 million metric tonnes of IMO 2020-compliant very low sulphur marine fuel in 2020.
As previously reported, a shortage of VLSFO is threatening to halt coastal shipping operations on India’s East Coast, even though Indian Oil Corp. (IOC) began VLSFO supply last October and Hindustan Petroleum Corp. Ltd (HPCL) announced earlier this month that it was also providing the 0.50% sulphur fuel.
According to Reuters, IOC chairman Sanjiv Singh said today (16 January) that VLSFO output is expected to grow to 1 million mt over the course of the year.
IOC is currently purchasing US oil through spot tenders and annual contracts, but Singh was reported as saying that the refiner will explore the possibility of securing an annual deal to import Russian oil.
Singh also said that a decision will be made on bidding for the state-operated Bharat Petroleum Corp. once tender details had been evaluated.