On 1 January 2020, a new global cap by the IMO on sulphur content in marine fuels will come into effect. The new regulations, known as IMO 2020, mandates a maximum sulphur content of 0.5% in marine fuels globally. The driver of this change is the need to reduce the air pollution created in the shipping industry by reducing the Sulphur content of the fuels that ships use. The impact of the new regulations on Africa will be profound given the mix of lower and higher Sulphur in oil production across the continent.
Many industry experts and researchers have written on the impact of the regulations from various perspectives with very little detail on the impact on Africa. PwC Nigeria in partnership with Energex Partners and Downstream Advisors Inc. has developed a report examining the impact of the regulation on Africa in detail considering key actors in the African market viz producers, refiners, consumers, governments, industries among others.
A free synopsis of the report is available for download below. The full 58 page report is now available for purchase.