Scorpio Tankers: No compelling argument for scrubbers

ScorpioTankers

Scorpio Tankers plans to meet the IMO’s sulphur cap by burning compliant fuels, the company said.

All ships trading outside of sulphur Emission Control Areas (ECAs) will be required to use fuel with a sulphur content of up to 0.5 pct.

Even though Scorpio continues to evaluate scrubbers, the company said that it does not see a “compelling argument to install them today.”

Scorpio said that regulatory, technological, and supply/pricing risks were key factors in deciding against scrubbers.

“The demand and fuel-efficiency stories are more relevant to the product tanker segment than the yes/no scrubber
decision,” the company added.

“By 2020, if 20 pct of the global fleet uses scrubbers or LNG, the remaining 80 pct would need to comply through consuming compliant fuels,” Scorpio estimates.

“If 75 pct of the needs to be transported by sea, this would increase seaborne refined product exports by 1.9 mb/d (75% of 2.5 mb/d).”

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