IEA (the International Energy Agency) has predicted a rapid increase in demand for MGO (Marine Gas Oil). The cause of the demand increase is due to the stricter regulation on sulfur emissions applicable from 1st of January 2015.

One way to comply is by using MGO, as it meets the allowable sulfur limit of 0,10 % by weight, though other methods are applicable as well: E.g. switching to LNG (Liquefied Natural Gas) bunkers or via scrubbing technology.

IEA predicts a European demand growth of 50% from its current level, while MGO will become the dominant choice in OECD Americas nations. Issues of concern that may slow the demand progress lies in except areas and a potential lack of sufficient enforcement.

Read the full story on shipandbunker.com and platts.com