Knowledge-based firms are helping Qeshm Star Bunkering Company to produce very low sulfur fuel oil (VLSFO), managing director of the firm said.
“The fuel conforms to the International Maritime Organization’s [IMO] regulations for a 0.5% global sulfur cap for marine fuels,” Mohsen Fakheri was also quoted as saying by IRNA.
“The implementation of the global low sulfur regime for bunker fuels, which took effect in 2020, turned out to be a major challenge for Iranian shipping companies as very few refineries were able to produce the fuel, he added.
Fakheri noted that startups have played an active role in this regard and the problem is almost solved.
“Qeshm Star Bunkering Company, a subsidiary of the Islamic Republic of Iran Shipping Lines [IRISL], has been collaborating with knowledge-based firms over the last two years and now there are no worries regarding the production of VLSFO,” he said.
IRISL owns 46 vessels and four chartered ships, with a respective capacity of 96,383 TEU (20-foot equivalent unit) and 58,032 TEU. Its share of the global shipping market is a meager 0.7%.
Foreign ships avoided Iranian ports two years ago simply because they were unable to access VLSFO, but now QSBC is supplying them with good quality fuel.
According to the official, Shazand Refinery in the central city of Arak, Markazi Province, was the only refinery obliged to produce 500,000 tons of VLSFO a year in 2020 while Iran's shipping fleet requires 1.5 million tons of the fuel.
Referring to alternatives to achieve a compliant fuel, he said one solution was to buy the fuel from other countries like Singapore. But this was not viable not only due to the exorbitant price ($750 per ton) but also because of problems in financial transactions created by US economic sanctions.
Crude oil contains sulfur which, following combustion in the engine, ends up in ship emissions. Sulfur oxide (SOx) is known to be harmful to human health, causing respiratory symptoms and lung disease.
In the atmosphere, SOx can lead to acid rain, which can harm crops, forests and aquatics, and contribute to acidification of the oceans.
Limiting SOx emissions from ships improves air quality and protects the environment.
Qeshm Bunkering Project
According to Fakheri, the company has invested close to $50 million in Qeshm Bunkering Project in Salakh rural district, 10 kilometers off the Persian Gulf.
The plan is aimed at supplying fuel to ships in the Persian Gulf.
The onshore part of the initiative comprises 10 storage tanks that can hold 52,600 cubic meters, 10 kilometers of pipelines, a pumping house and blending facilities built on a 12-hectare plot.
The construction of a loading pier is underway so that large container ships (between 100,000 DWT) can dock.
“To conform with IMO’s new regulations, Nouri Petrochemical Company have been producing low-sulfur fuel since 2020,” Taqi Sanei, the head of the Bushehr-based company, said.
"Machinery and equipment in the plant are upgraded to reduce current sulfur level in mazut and diesel from 3.5% to 0.5%. The company has invested $120 million to build a refining facility in which sulfur content in mazut and diesel will be reduced below 0.5%.”
According to the official, Iran's shipping fleet annually needs at least 2 million tons of mazut.
IRISL ranks 15th in Alphaliner’s ranking of prominent carriers in its Feb. 16, 2021, report, with a consolidated capacity of 151,706 TEUs.
IRISL was placed between Korea Marine Transport Company (KMTC Line) with a capacity of 161,367 TEUs and China-based Antong Holdings Company with a capacity of 144,316 TEUs.
IRISL operates a total of 47 vessels: 43 owned and four chartered ones. Its own and chartered capacities stand at 93,674 TEUs and 58,032 TEUs, respectively while its global market share is at 0.6%, Fars News Agency reported.
Among top 100 Iranian companies, IRISL is ranked 26th in terms of sales and revenues in the current fiscal year (ending March 20, 2023), registering an improvement of five places compared with last year.
IRISL ranks first in Iran’s marine transportation industry.
