SINGAPORE (May 27): Vitol plans to build a 35,000 b/d simple crude distillation unit (CDU) at Tanjung Bin in Malaysia, with start-up in 2Q 2020, says a person familiar with the company’s plans, who asked not to be identified as the information isn’t public.

* The CDU is expected to produce low-sulfur fuels to meet new IMO 2020 rules that’ll take effect from Jan. 1

* The unit, however, will not have strong sulfur-reducing abilities

** Depending on the sulfur-content of crude that’s refined at the CDU, output will range from low-sulfur to high-sulfur fuel oil

* Facility will be built near an existing tank farm site that’s partly owned by Vitol

* Vitol’s spokeswoman in London declined to comment