LONDON (Reuters) - Royal Dutch Shell has struck a deal with Dutch tank terminal firm HES International to partially restart a German oil refinery mothballed since 2011 in response to new restrictions on marine fuels, two trading sources told Reuters.
A new cap set by the International Maritime Organization (IMO) that will cut the sulphur content in shipping fuel to 0.5 percent from 3.5 percent from next year is set to be one of the biggest fundamental events to hit oil markets in years.
HES Wilhelmshaven Tank Terminal is in the process of reinstalling the vacuum distillation unit (VDU) at Wilhelmshaven to produce low-sulphur bunker fuels ahead of the implementation of the IMO rules, a spokeswoman for the company said.
HES said it had “reached a tolling agreement with a customer,” but declined to comment on the parties involved.
(Reporting by Ahmad Ghaddar; Editing by Jan Harvey)
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