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China could become self-sustainable in low sulphur bunker fuel market during 2020

24 Jun 2020

Zhang Tong, vice president of state oil major PetroChina International said Chinese refineries would be able to produce 18.1 million metric tonnes (mt) of low sulphur bunker fuel this year, sustainably serving its own market for marine fuel, reported Reuters.

The statement was reportedly made as part of a speech by Zhang at the opening of the LSFO futures contract on the Shanghai International Energy Exchange.

Zhang added China will be able to produce 22.6 million mt of the IMO-compliant fuel by 2021, increasing output to 29.6 million mt by 2022

If China were to optimise its production capacity, the country would be self-sufficient in supplying its bunker fuel market, which serves an estimated 12 million mt to the international shipping community annually, he concluded. 

Traditionally, China imported its supply of bunker fuel from suppliers in the region like Singapore and South Korea, but the transition into IMO 2020 and the economic impact of COVID-19 has seen many state-run refineries pivot to producing low sulphur bunker fuel to serve domestic and international demand. 

Published: 24 June, 2020

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