Investors worry as major box lines still falter on strategy for low-sulphur laws

By Mike Wackett

Investors are increasingly concerned that, with only 18 months to go until IMO’s 0.5 per cent sulphur cap regulations, container lines still have no clear strategy on how they will comply, and how the change will be paid for. This ‘wait and see’ approach is regarded as a red flag by investors who worry that the lines will stumble into the default solution, in January 2020, of burning the 50 per cent-more-expensive low-sulphur fuel oil (LSFO) in their ships without proper compensation. (more…)

Oil pipeline approval also generates Federal initiatives to protect and restore B.C.’s coast

Oil pipeline approval also generates Federal initiatives to protect and restore B.C.’s coast

By R. Bruce Striegler

Little did Prime Minister Justin Trudeau realize in November 2016 as he stood before a crowd of reporters in Vancouver announcing his government’s $1.5 billion Oceans Protection Plan, that he would ultimately have to declare in May 2018 the government would be spending a further $4.5 billion to purchase the Trans Mountain pipeline and all of Kinder Morgan Canada’s core assets.

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First Nations Eagle Spirit project offers an alternative to the troubled Kinder Morgan proposal

By R. Bruce Striegler

While the public and the national media have been focused on the controversy over the Kinder Morgan Pipeline Expansion, another, quite different, proposal has been gaining considerable attention. A venture lead by noted B.C. First Nations writer and entrepreneur Calvin Helin, is proposing a $16 billion project to carry Alberta oil to tidewater in British Columbia. Five years ago, Eagle Spirit Energy Holdings Ltd., began investigating the notion of creating the Eagle Spirit energy corridor, whose concept is to move Alberta bitumen, B.C. natural gas and B.C. hydroelectricity along a route from Alberta to northwestern B.C. terminating near Prince Rupert. The acrimony over the Kinder Morgan expansion has brought the focus of their idea directly onto the oil pipeline portion of the plan. (more…)

IMO listens to Members of European Parliament to act to reduce shipping emissions

By Alexander Whiteman

MEPs (Members of the European Parliament) have told the International Maritime Organization there can be no exceptions or exemptions in the fight against climate change and are demanding immediate action to cut shipping emissions. In an open letter to EU member states and the IMO, MEPS from Croatia, the Netherlands, Portugal and Sweden say that despite shipping creating emissions equal to all of those created in the Netherlands, it remains the only sector not included in the European commitment to the Paris Agreement. (more…)

Box lines face extra $34 billion for low-sulphur fuel if shipowners don’t install scrubbers

By Mike Wackett

Within two years it will be illegal to power a ship with fuel having more than 0.5 per cent sulphur content, unless the vessel is fitted with an exhaust clean gas system, known as a scrubber. Low-sulphur fuel oil (LSFO) – currently about $580 per tonne, is significantly more expensive than heavy fuel oil (HFO) at about $370 per tonne. However, according to a new white paper, released by Swedish financial services group SEB, fewer than 2,000 ships out of a world merchant fleet of some 60,000 – 3.3 per cent – are expected to have scrubber systems installed by January 1 2020. (more…)

Time pressure on carriers to decide on scrubbers or more expensive greener fuel

By Mike Wackett

With just over 18 months until the IMO’s 0.5 per cent sulphur cap regulations come into force, major container lines are undecided on their future fuel strategy. Come 1 January 2020, ships not powered by LNG must either use more-expensive low-sulphur fuel oil (LSFO), or be fitted with an exhaust gas cleaning system (known as scrubbers) in order to continue burning heavy fuel oil (HFO). (more…)