Oil and petrochemical firm
Cosmo Oil has begun supplying ECA-compliant low sulphur bunker fuel in
Japan,
Platts reports.
The company's bunker division is now selling marine fuel with a maximum sulphur content of 1%, utilizing product sourced from its 175,000-barrel-per-day (bpd)
Yokkaichi refinery located in the Mie Prefecture, its 140,000 bpd
Sakaide plant in Kagawa Prefecture, and its 100,000 bpd
Sakai refinery in Osaka Prefecture.
Cosmo Oil's decision to offer low sulphur product to clients follows the recent implementation of stricter regulations in North America. On August 1, 2012,
North America Emissions Control Area (ECA) zones became enforceable. The regulation is part of Annex VI to the MARPOL Convention entitled "
Regulations for the Prevention of Air Pollution from Ships".
The regulation dictates that the ECA zones extend up to 200 nautical miles from coasts of the
United States and
Canada, including a portion of the
Hawaiian Islands. In the ECA zones, ships are required to burn fuel with sulphur content not exceeding 1.00%. Notable exceptions to this area are the Aleutian Islands and Arctic waters of North America.
Annual bunker sales of 3.5% fuel oil for Cosmo Oil are thought to be approximately 360,000 - 480,000 metric tonnes. It is estimated that the company's sales volumes of 1% fuel oil could be as much as 5,000 metric tonnes per month.
Sales of marine fuel in Japan per year are estimated to be approximately 4.8 to 5 million tonnes, with Tokyo Bay accounting for around 40-45 percent of the country's total bunker market.
The Japanese bunker market has traditionally been dominated by local refiners such as Idemitsu Kosan Co. Ltd., Cosmo Oil Company Ltd., Nippon Oil Corporation, Japan Energy Corporation and oil major Exxon Mobil, in addition to trading houses such as Marubeni Petroleum Co. Ltd., Hanwa Company Ltd., Kanematsu Corporation and Sumitomo Corporation.
Established in 1986, Cosmo Oil is involved in the procurement of crude oil, oil refining, oil transportation, the production of petrochemicals and the sale of petroleum products.
The main shareholders of Cosmo Oil include: Infinity Alliance Limited, Japan Trustee Services Bank, Limited.(Trust Acc.), Mizuho Corporate Bank, Limited., The Master Trust Bank of Japan, Ltd.(Trust Acc.), The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mitsui Sumitomo Insurance Company, Limited., The Kansai Electric Power Company, Incorporated, Aioi Nissay Dowa Insurance Co.,Ltd., Tokio Marine Nichido Fire Insurance Co.,Ltd. and Sompo Japan Insurance Inc.
