Torm opts for more scrubbers
Danish tanker operator Torm, is to equip more vessels with scrubbers despite delays in its installation programme.
In its Q3 report Torm said it expects to install a total of 44 scrubbers and has since the last quarter committed to an additional ten scrubber installations. The new installations support Torm’s balanced approach to the new sulphur regulation, according to which approximately half of Torm’s fleet will operate with scrubbers.
The recently decided additional scrubber installations will be conducted during the first and the second quarter of 2020. As of 12 November 2019, Torm has conducted 16 scrubber installations. Of the remaining 28 installations, seven are expected to be conducted in 2019, 12 in the first quarter of 2020 and nine in the second quarter of 2020. As seen across the entire industry.
Torm has also experienced some delays in recent scrubber installations and decided to postpone some installations to the first and the second quarter of 2020 to reduce the risk of further delays, and also to utilise the current strong market. CEO Jacob Meldgaard, said that the delays are caused by lack of yard space but the scrubbers themselves have been prepared. Yard space is particularly tight for LR1 and LRS vessels.
For the non-scrubber vessels, that will be using compliant fuels from 1 January 2020, customised schedules have been developed, and the cleaning of the bunker tanks have been initiated during the third quarter of 2019. The first volumes of compliant fuels have been delivered and tested onboard the vessels, and all non-scrubber vessels are in the process of being prepared for using the new compliant fuels during the fourth quarter of 2019.
Torm reported it has CAPEX commitments of $31.7m for retrofit scrubber installations. In addition, $12m relating to six additional scrubbers was committed after the quarter ended. As of 30 September 2019, TORM’s order book stood at five newbuildings consisting of two LR1 and three MR vessels. The newbuildings are expected to be delivered in the fourth quarter of 2019 and the first quarter of 2020.