KPI OceanConnect PR Team




Speaking at a workshop for selected business partners on the new sulphur regulations coming into effect 2020, Søren Høll CEO of KPI Bridge Oil confirmed the company’s readiness for the expected changes.

“The key to successfully manage the changes brought about by the new Sulphur regulations is preparation and if anyone hasn’t started preparing their operations yet, right now is most definitely the right time.

Like most of the leading players in the bunker industry, KPI Bridge Oil has been preparing for the expected market changes for a long time. We currently offer worldwide market intelligence and comprehensive advice to clients on local availability, port differentials and managing route planning as well as more technical advice on tank inspections, barge preparations, performing compatibility tests and risk assessments. Several majors have already announced port specific information as to where they will supply VLSFO, however, not all have released specifications for their 0.5% compliant products. We expect to see a diverse range of specs that comply with the new 0.5% Sulphur regulations and are working with suppliers to establish the likely impact on quality and availability. Constant focus on testing the quality of these blends going forward is of course a crucial criterion for us to ensure that we continue to deliver reliable advice to clients.

We anticipate a price increase of 30-40% depending on region and local availability and with this upward drive on prices, we expect to see a shortage of available credit in the market. To be in a position to accommodate some of this demand, KPI Bridge Oil has recently secured access to a new revolving credit facility which increases the company’s funding capacity by more than 60% when compared to our previous arrangement. The funding package is for unsecured credit in line with KPI Bridge Oil’s longstanding policy not to pledge invoices to third parties and is the largest credit arrangement ever for the group which firmly underlines the banks’ confidence in our business model, financial strength, credit worthiness and ability to perform.

It is equally important that our supply network and business partners have peace of mind knowing that they’re dealing with a secure and trusted counter party and experience the value we add to their daily operations. Our partnership approach means that we are continuously looking at ways to increase the level of flexibility and exchange of knowledge necessary to support those key relationships.

We started fixing 0.5% sulphur contracts in flow ports at the beginning of Q2 and expect demand for these to significantly pick up over the summer. Clients wishing to manage risks and secure availability of future low and high sulphur deliveries can engage with us now to explore opportunities to fix contract spreads over Q4 2019 and Q1 2020.

KPI Bridge Oil has undertaken a comprehensive internal review over the last two years to prepare our systems, operations and team members for the 2020 regulations and I am confident that we are as well prepared and ready as anyone can be.”