An unusually high number of overhauls have been planned for HI 2019 in order to ensure readiness for the 0.5-sulfur cap being mandated by the IMO for worldwide marine fuels beginning in Jan.2020.Refiners in the US(and around the world)are planning to move autumn and winter shutdowns forward to the time of year when they are typically focused on producing heavy volumes of gasoline to prepare for the summer driving season.Margins on marine fuels and middle distillates,however,are expected to fly open around the transition to low-sulfur marine fuels,so everyone wants to have their refining and desulfuri-zation capacity in peak form to take advantage of what is projected to be a season of profitability.Susan Bell of consultancy IHS Markit also noted that some turnarounds that might have been scheduled for winter 2019/2020 will likely be pushed to later dates in order to maximize earnings during the transition period.She estimates around 1MM b/d of refining capacity may be down,on average,throughout 2Q.
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