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2008 March 31   06:49

Supplier says SECAs are not properly enforced

There has been a new claim that low-sulphur bunker fuel regulations are not being properly enforced in the European SECAs (Sulphur Emission Control Areas). Marco Tritto, Bunker Business Manager for the Brazilian national oil company Petrobras, said: "Not everybody in Europe is complying (with new low-sulphur regulations)." He was speaking in an interview given to the Dow Jones Energy news service and published.Referring to the European SECAs, Tritto was quoted as saying: "Without enforcement, it's useless."  He added that there was no official data on how successfully the SECAs were operating.
North-West Europe is home to the world’s first two SECAs, one of which came into force in the Baltic in 2006 and the second in the North Sea and English Channel in 2007.
Ships sailing in a SECA are meant to use a fuel with a sulphur content of no more than 1.5%.
Petrobras began selling low-sulphur residual bunker fuel in Rotterdam last year and leased storage at Euro Tank Terminal (ETT) in Rotterdam to hold the product.
Brazilian refineries are major producers of low sulphur fuel oil as Brazilian crude oil generally has a low sulphur content.
Tritto estimated that the compliance rate in the SECAs was only about 40%-50%.
He complained that uncertainties about data and future compliance made it difficult to forecast market growth.
There were warnings from industry observers last year that compliance with SECA regulations might prove "minimal".
Petrobras recently expanded its storage capacity in Rotterdam and according to Tritto will soon start supplying higher-sulphur bunker fuel.
"We have plans to expand to other areas, like Amsterdam, Antwerp, in the future,” he was quoted as saying.

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