Global energy and commodity price reporting agency Argus Media on Monday (24 December) published a summary on the very low sulphur oil (VLSFO) export awarded by the Chinese government to support demand in the bunker market post IMO2020 :
China’s commerce ministry has awarded a 5mn t (32.25mn bl) export quota for very low-sulphur fuel oil (VLSFO) to five refiners for 2021, to help meet International Maritime Organisation (IMO) sulphur requirements.
The quotas have been awarded to state-controlled Sinopec with 2.4mn t, CNPC with 1.5mn t, CNOOC with 400,000t and Sinochem for 320,000t, as well as private-sector ZPC with 390,000t.
China awarded these refiners a total of 10mn t of VLSFO export quotas in 2020.
The government is expected to grant more VLSFO export quotas for 2021, as 5mn t is not enough to meet marine fuel demand. China allows VLSFO exports only to the bonded bunker sector, rather than for cargo trades, because it wants to ensure the fuel goes to the bunker market to meet the IMO 2020 requirement, which caps the sulphur content of marine fuel at 0.5pc.
China’s bonded bunker sales were about 16mn t in January-November 2020, up from about 12mnt in the same period in 2019.
China’s main refineries say they have more than 18mn t/yr of VLSFO production capacity, although official data do not break down production of VLSFO and high-sulphur fuel oil (HSFO). China produced 27.6mn t of fuel oil in January-October, up by 41pc or 8.5mn t from 19.1mn t over the same period in 2019.
Photo credit and source: Argus Media
Published: 29 December, 2020
The top three positive movers in the 2020 bunker supplier list are Hong Lam Fuels Pte Ltd (+13); Chevron Singapore Pte Ltd (+12); and SK Energy International (+8), according to MPA list.
‘We will operate in the Singapore bunkering market from the Tokyo, with support from local staff at Sumitomo Corporation Singapore,’ source tells Manifold Times.
Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.
Claim relates to deliveries of MGO to the vessels Pacific Diligence, Pacific Valkyrie, Pacific Defiance, Crest Alpha 1, and Pacific Warlock between March 2020 to April 2020.
3,490 mt of LSFO from Itochu Enex was lifted at Universal Terminal; the same bunker stem was bought by Global Marine Logistics and delivered by bunker tanker Juma to receiving vessel Kirana Nawa.
Representatives of Veritas Petroleum Services, Maersk, INTERTANKO, ElbOil Singapore, and SDE International provide insight from their respective fields of expertise on what lies ahead.