New Orleans-based bunker supplier, John W. Stone Oil, has started offering 0.5% sulfur fuel oil (SFO) in response to the International Maritime Organization’s (IMO) sulfur cap, which will take effect on January 1.
The company began supplying the lower-sulfur fuel in early September after conducting over a year of testing. CEO Tony Odak confirmed the launch in a recent statement to Argus.
The firm operates two dedicated bunker barges for the 0.5% SFO, which meets ISO 8217 standards. The fuel is currently available near its headquarters on the Mississippi River in New Orleans. Odak mentioned that the company is in talks to distribute the fuel at other ports, but the decision will depend on demand. However, he did not specify which locations could receive the product.
For now, John W. Stone Oil will focus exclusively on offering 0.5% SFO, but it may consider expanding its offerings to include 0.5% marine gas oil (MGO). So far, the company has not seen enough demand for 0.5% MGO to justify adding it to their product line.
Odak speculated that the price difference between 0.5% SFO and 0.1% MGO is likely a key factor influencing customer choices. The company has used small amounts of 0.5% MGO for blending, but found that its characteristics were slightly different from the 0.1% version.
John W. Stone Oil operates a fleet of 47 barges and more than 20 storage tanks ranging from 12,000 barrels to 95,000 barrels in size.