1. The Impact of IMO 2020

2. IMO 2020
Very Low Sulphur Fuel Oil (VLSFO 0.5% max. sulphur) required outside the Emissions Control Area (ECA) unless a vessel is equipped with an approved Exhaust Gas Cleaning System (Scrubber).

3. Market In Transition
Current Bunker demand for all fuel grades VLSFO rapidly replacing High Sulphur IF380 Fuel Oil (3.5% max sulphur) IF380 Fuel Oil (0.5% max sulphur) Low Sulphur Marine Gas Oil (0.1% max sulphur) IF % availability will decline in 2020.

4. VLSFO Quality In Vancouver VLSFO will be a LSMGO/ IFO blend.
Blend to meet for sulphur specification (low viscosity)
Stability of blend
Fuel Compatibility (mixing fuels onboard)

5. VLSFO Supply Fuel oil/ diesel blends Low viscosity
Premium to 3.5% fuel oil
Discount to LSMGO

6. IFO Supply
IFO supply will continue to be available in Vancouver for vessels equipped with approved Scrubbers.
Limited refinery/ terminal IFO tanks and limited barge capacity will be on-going supply constraints.
Price will be dependent on ratable volumes/ throughput.
Price discount or premium?

7. LSMGO Supply Vancouver supply outlook is positive
Shortage of high flash diesel in some markets
Vancouver diesel prices trade at a premium to most markets

8. Operational Constraints
Tank segregation on barges
Limited high sulphur capacity
Demand seasonal in Vancouver
Refinery optimization-ratable demand
Alternative markets
Change in crude slate-lower sulphur

9. 2020 Prices VLSFO prices dependent upon IFO/ Diesel blend ratios.
LSMGO prices will rely on supply/ demand scenario (current forecast is continued long supply in Vancouver).
HFO priced on sulphur content (lower sulphur HFO will price at a premium-there is value in sulphur).

10. Price Risk Geopolitical risk factors Sanctions Tariffs
Aging Refinery Infrastructre

11. The Future of Bunkers
LNG Bunkers
Battery Power
Methanol

12. Q & A