Sunday, 11 October 2015

RFO demand is expected to decline globally: Refineries will have to adjust sooner rather than later

As the demand for Residual Fuel OIl declines in global market, a lot is expected to change in the way refineries.
8Refineries will have to upgrade and convert residual material to lighter, cleaner products. And that is going to cost money.
8Health and environmental concerns related to the high sulfur content in RFO have led to new policies and regulations that have significantly lowered expectations for future RFO use.
8RFO contains a large amount of contaminants, including sulfur, nitrogen, and heavy metals. Because of its high viscosity, RFO is either blended with lighter streams or heated to ensure that it can be pumped.
8Throughout the world, RFO is used in many sectors, including marine transportation, power generation, commercial furnaces and boilers, and various industrial processes.
8RFO plays an important role in the global liquids fuel market, as its price is normally below that of other liquid fuels.
8Large reductions in RFO demand will likely come from decreased use of RFO for power generation and space heating.
8In the power sector, the cost of pollution control, maintenance, and RFO heating often offset the lower cost of RFO when compared to natural gas and other more expensive fuels.
8Consequently, power sector demand for RFO, especially in industrialized countries, is expected to decrease.
8However, RFO will serve as a transitional fuel in the power sector of developing countries such as India that may be more sensitive to price and less sensitive to environmental and health implications.
8Some marine transportation operators are considering the use of LNG as an alternate fuel for ships operating along routes where LNG is available.

For more details visit indianpetroplus.com

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