Business

Argus Media: China’s fuel oil quotas could limit LSFO imports

Market participants noticed export volumes to China have decreased since March, possibly due to increased domestic LSFO bunker fuel production, it said.

Published

6 years ago

May 6, 2020

Admin

Global energy and commodity price reporting agency Argus Media on Tuesday (5 May) published an analysis on the impact of China’s recently implemented 0.5% LSFO bunker export quotas, with a focus on the import market:

The move by China’s commerce ministry to issue its first batch of 0.5% low-sulphur fuel oil (LSFO) bunker export quotas could lower imports of LSFO into the country.

Exports of residual bunker fuel oil from Singapore and Malaysia to Chinese bunkering ports is at least 1mn t a month, said traders. Market participants have noticed that export volumes to China have decreased since March.

The slowdown in cargo movement towards China could have resulted from increased production of LSFO bunker fuel from domestic refiners. Production rose after Chinese authorities began to allow LSFO refiners to claim a rebate on the 13% value-added tax (VAT) paid on sales of fuel oil into the bonded market from 1 February, spurring interest in exports to bonded tanks.

March and April fuel oil exports from Singapore and Malaysia to China were estimated at around 550,000-650,000t and 650,000-750,000t respectively, according to market participants. Total February fuel oil exports from Singapore and Malaysia to China were well above 1mn t, said traders.

Chinese refiners began to ramp up the supply of fuel oil for sale into the bonded bunker market, after the announcement of approved plans to refund tax on fuel oil exports in February. The increase in production volumes occurred when delivered premiums for the maximum 0.5% sulphur marine fuel on a fob basis at the Zhoushan port were nearing $100/t to Singapore 0.5% marine fuel spot assessments on a fob basis.

Delivered premiums in March slumped below $50/t as Chinese refiners produced LSFO to ease pressure from high inventories of gasoline and diesel, as Covid-19 curtailed domestic demand of transportation fuel. The delivered premium stood at $29.02/t on 30 April.

Bur traders noted that the LSFO production from Chinese refineries to be sold into the bonded market is also very dependent on middle and light distillate profit margins. The impact of the issuance of fuel oil quotas on the country’s future fuel oil import patterns is still in its early stages.

China’s refining fleet is designed to minimise fuel oil output. Firm domestic gasoline and diesel prices in China could prompt refiners to easily switch to produce more distillates. This could curtail LSFO production from refiners to be sold into bonded tanks, which could keep suppliers at Chinese bunkering ports turning to bunker fuel imports to meet bunker demand in the bonded market.

China’s bonded bunker sales, including LSFO, high-sulphur fuel and marine gasoil, totalled 13.18mn t in 2019 and were largely supplied by imported cargoes from all over the world, mostly from Singapore. Sales at Zhoushan port rose to 993,000t during January-March, up by 14% a year earlier.

Photo credit and source: Argus Media
Published: 6 May, 2020

Business

Singapore: Notice of intended dividend issued for Parakou Shipping Pte Ltd

Creditors of the company will have to submit proof of debt to the liquidators of Parakou Shipping by 17 June, according to Government Gazette notice.

Published

21 hours ago

June 5, 2026

Admin

A notice to declare the intended dividend of Parakou Shipping Pte Ltd to its creditors has been posted on the Government Gazette on Wednesday (3 June).

The following are the details of the notice of intended dividend:

Name of Company : Parakou Shipping Pte Ltd (In Creditors’ Voluntary Liquidation)
Address of Registered Office : c/o KordaMentha, 50 Raffles Place, 25-01 Singapore Land Tower, Singapore 048623
Last Day of Receiving Proofs (if not already lodged): 17 June 2026
Name of Liquidator : Cameron Duncan
Address : c/o KordaMentha Pte Ltd, 50 Raffles Place, #25-01 Singapore Land Tower, Singapore 048623

Photo credit: steve pb from Pixabay
Published: 5 June, 2026

LNG Bunkering

Chinese firms form pact for 20,000 cbm LNG bunkering vessel project

CM Energy Tech, Seacon Shipping Group and China Merchants Heavy Industry (Jiangsu) signed a joint venture agreement for 1+1 20,000 cubic meter LNG bunkering vessels.

Published

21 hours ago

June 5, 2026

Admin

CM Energy Tech Co Ltd, Seacon Shipping Group Holdings Limited and China Merchants Heavy Industry (Jiangsu) Co Ltd on Tuesday (26 May) signed a joint venture agreement for the construction of 1+1 20,000 cubic meter liquefied natural gas (LNG) bunkering vessels.

The parties also signed a shipbuilding contract for the first vessel, which will be constructed by China Merchants Heavy Industry.

The project combines CM Energy Tech’s access to the China Merchants Group ecosystem, Seacon Shipping Group’s expertise in ship management and operations, and China Merchants Heavy Industry’s shipbuilding capabilities. The partners said the initiative is intended to address the shortage of large-capacity LNG bunkering vessels in the Chinese market.

The newbuild LNG bunkering vessel will feature dual C-type independent cargo tanks and is designed with a boil-off rate of just 0.16% per day. It will also be capable of delivering LNG at a bunkering rate of up to 2,000 cbm per hour, enabling efficient refuelling of large LNG-fuelled vessels.

The vessel will be powered by Wärtsilä dual-fuel engines and will comply with IMO Tier III emissions requirements. The first vessel is scheduled for delivery in 2028.

The three companies said they plan to further expand cooperation across the LNG value chain, strengthen their presence in the marine energy sector and provide customers with integrated LNG bunkering services focused on safety, operational efficiency and lower carbon emissions.

Photo credit: David Yu from Pixabay
Published: 5 June, 2026

Methanol

India’s Agastya inks green methanol offtake agreement with SAR Group

Agastya Green Fuels and SAR Group will work together to enable green methanol storage, bunkering, and marine fuel infrastructure across Sri Lanka.

Published

21 hours ago

June 5, 2026

Admin

India’s clean energy conglomerate Agastya Group on Wednesday (3 June) said Agastya Green Fuels signed a long-term green methanol offtake agreement with Sri Lankan bunker supplier SAR Maritime Agencies, a SAR Group company, for the supply of 250,000 metric tonnes (mt) per annum of EU RFNBO RED III Compliant green methanol.

Agastya said the agreement establishes one of the largest green methanol supply partnerships in the Indian Ocean Region and marked a major step toward creating a new green maritime energy corridor connecting India and Sri Lanka.

The green methanol will be supplied from the Agastya Green Fuels Hub at Mulapeta Port, Andhra Pradesh, India, where Agastya is developing a green methanol export-oriented facility with a planned investment of USD 6 billion over the next six years. The facility is expected to produce 1 million mt per annum.

“Through this partnership, Agastya Green Fuels and SAR Group will work together to enable green methanol storage, bunkering, and marine fuel infrastructure across Sri Lanka, positioning Colombo, Hambantota, and Trincomalee as future clean-fuel hubs for global shipping,” the company said in a social media post.

“The Indian Ocean is emerging as the world’s next green fuel corridor. Agastya Green Fuels intends to be at its center,” said Shashi K Reddy Arjula, Founder and Group CEO of Agastya.

Photo credit: CHUTTERSNAP on Unsplash
Published: 5 June, 2026