Storage operators in the Mediterranean are facing a range of development opportunities, thanks to IMO 2020 as well as challenges with declining gasoline demand.
Considerable activity is happening around the IMO 2020 regulation, which comes into effect on January 1, 2020, which presents not only challenges for the midstream sector, but also opportunities.
Ahead of the Argus Mediterranean Storage and Logistics conference in June, Marco Schiavetti, CEO and CCO at Saras Trading, says that the industry in the Mediterranean is facing challenges and opportunities.
‘Obviously, with the new IMO 2020 regulation, a lot of things are going on in bunker fuels. But looking forward, the Mediterranean in particular continues to be oversupplied with gasoline – and that, coupled with declining demand, represents a growing challenge for the whole industry.’
Currently, terminal and logistics assets are preparing to accommodate new bunker fuel streams that will emerge as a result of the IMO 2020 regulation as well as providing services for the old fuel specification, which will continue to be used by ships that have scrubbers installed.
Schiavetti adds: ‘Several refineries, including Saras, are already producing 0.5% compliant fuel, working closely with shipowners to test the new product and experimenting with new crude slates and production schemes in order to maximise profits.
‘This is being done in order to be fully ready for the fourth quarter of 2019, when demand for the new product will start to materialise and also hopefully lead to a higher margin in particular for middle distillates.’
Schiavetti will be speaking more about the opportunities in the Mediterranean for storage operators at the Argus Mediterranean Storage and Logistics conference in Valletta, Malta on June 6-7. The conference will also examine local and international markets as well as raising funds for storage and tank terminals. For more information visit www.argusmedia.com/en/conferences-events-listing/mediterranean-storage-and-logistics