Maersk Oil Trading will source around 1.25M tonnes a year of low-sulphur fuel from a facility in New Jersey after reaching an agreement with PBF Logistics.
The product, which represents the equivalent of around 10% of parent company Maersk’s total annual fuel demand, will be processed at the CPI Operations terminal facility. The Aframax-capable terminal was bought by PBF in October.
“This processing agreement forms a cornerstone in Maersk’s fuel sourcing strategy for the IMO 2020 sulphur cap,” said Maersk Oil Trading head Niels Henrik Lindegaard. “The majority of our fleet will comply with the regulation through use of compliant low sulphur fuels.
“With the capability to produce and store compliant low sulphur fuel on the US east coast we take control of the fuel supply in a key maritime hub for us. We will continue our drive to ensure compliance in all geographies come 2020.”
PBF Logistics executive vice president Matt Lucey said “We will repurpose a portion of the existing idled asphalt facility to process approximately 25,000 barrels per day of crude for Maersk as part of their overall IMO fuel sourcing strategy.”
In August last year Maersk and Vopak announced a leasing agreement for storing 2.3M tonnes of 0.5% sulphur fuel, equivalent to around 20% of Maersk’s annual fuel demand, at the Vopak Europoort Terminal in Rotterdam.