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China: Domestic low-sulphur bunker fuel production hits record high in May, on fall in imports

Output of low-sulphur fuel oil in Chinese refineries reached 1.322 million mt in May 2022, the highest month-on-month increase since China started production in 2020.
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The following article published by Manifold Times on 15 June was sourced from China’s domestic market through a local correspondent. An online translation service was used in the production of the current editorial piece:

Imports of low-sulphur fuel oil in China have dropped sharply since April, according to China-based consultancy LongZhong on Saturday (11 June).

An import volume of less than 300,000 metric tonnes (mt) was recorded in April and no arrivals of low-sulphur fuel oil in Chinese ports have been posted for May.

At present, the low-sulphur fuel oil in China’s bonded ship fuel supply market mainly relies on domestic resources for fuel supply.

China: Domestic low-sulphur bunker fuel production hits record high in May, on fall in imports

In order to make up for the shortage of supply caused by the decrease in imports, domestic refineries have increased their low-sulphur fuel oil output.

However, better prices for low-sulphur fuel oil in the domestic Chinese market have resulted in producers favouring inland sales of the material for higher profit margins, than over the bonded bunkering sector.

China: Domestic low-sulphur bunker fuel production hits record high in May, on fall in imports

According to data from Longzhong, the output of low-sulphur fuel oil in Chinese refineries reached 1.322 million mt in May 2022, the highest month-on-month increase since China started low-sulphur fuel oil production in 2020. 

From January to May 2022, China’s low-sulphur fuel oil production increased by 30% year-on-year, while low-sulphur fuel oil consumption fell by about 0.8% year-on-year.

China: Domestic low-sulphur bunker fuel production hits record high in May, on fall in imports

Although the output has reached the highest level in history, due to the scarcity of imports, domestic resources are still in a state of tension. The level of port oil supply orders is limited by resources making it difficult to make a substantial breakthrough. 

From January to May 2022, China’s bonded ship oil supply market showed a slight decline compared with the same period of last year.

At present, the destocking of low-sulphur bonded ships in major ports is obvious. At the same time, the measurement of oil products during the refuelling process of bonded ships is more stringent.

At present, the procurement channels and supply capacity of domestic resources have become limitations for the growth of bonded ship fuel supply companies; especially for most local bunker license players which have no resource supply guarantee, restricting their development. 

In addition, under the imbalance of supply and demand, China loses its price advantage over Singapore, and is also at a disadvantage in the competition in the international market.

It is expected that in June , the output of low-sulphur fuel oil in domestic refineries will still break through, or reach the level of more than 1.4 million mt. 

However, compared with the conventional demand of about 1.5 million tons in the Chinese market, it is still difficult to achieve a complete balance between supply and demand. If there is no obvious supplement of imported resources, the resource shortage will continue.

 

Photo credit: OilChem
Published: 15 June, 2022

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Methanol

Chimbusco completes bunkering op of China’s first 16,000K TEU methanol DF boxship

“COSCO SHIPPING YANGPU” was supplied approximately 900 metric tonnes of methanol marine fuel by Chimbusco in Shanghai on 11 May.

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Chimbusco completes bunkering of China’s first 16,000K TEU methanol DF boxship

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) completed a bunkering operation of the first domestically manufactured methanol dual-fuel container ship in Shanghai on 11 May, according to COSCO Shipping on Thursday (15 May). 

COSCO SHIPPING YANGPU was supplied approximately 900 metric tonnes (mt) of methanol marine fuel by Chimbusco at Pier 1 of COSCO Shipping Heavy Industry. 

The operation started on 7 May but was postponed due to unfavourable weather from the Jianghuai Cyclone.

Chimbusco completes bunkering of China’s first 16,000K TEU methanol DF boxship

COSCO Shipping said the operation marked an important achievement in green and low-carbon transformation in shipping, from ship construction and ecological layout of the entire green fuel industry chain of the company. 

Manifold Times previously reported the naming ceremony of China’s first 16,000 TEU methanol dual-fuel container ship, COSCO SHIPPING YANGPU in Yangzhou.

The methanol dual-fuel container ship named was the first in a series of vessels from COSCO Shipping Holdings, constructed by COSCO Shipping Heavy Industry Yangzhou. 

Related: COSCO Shipping names China’s first 16,000 TEU methanol dual-fuel container ship

 

Photo credit: Cosco Shipping
Published: 23 May, 2025

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Vessel Arrest

Malaysia: MMEA detains Thai tanker off Kelantan after shown suspicious documents

Initial checks revealed that insurance documents and other documents related to the vessel appeared suspicious and all six crew members on board failed to provide valid identification documents.

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Malaysia: MMEA detains Thai tanker off Kelantan after shown suspicious documents

The Kelantan Malaysian Maritime Enforcement Agency (MMEA) on Thursday (22 May) said it has detained a suspicious tanker at about 100 nautical miles from the Tok Bali estuary on 20 May. 

Kelantan MMEA director, Maritime Captain Erwan Shah Soahdi said an MMEA asset had detained the tanker while patrolling the Malaysia-Vietnam border. 

The vessel was detected after displaying several suspicious signs at around 1 pm before it was successfully detained 20 minutes later.

Malaysia: MMEA detains Thai tanker off Kelantan after shown suspicious documents

“Initial checks revealed the vessel has six crew members, including a captain and all are believed to be Thai citizens aged between 38 and 70,” he said.

It was also found that the insurance documents and other documents related to the vessel appeared suspicious and all the crews on board the vessel failed to provide valid identification documents during the check. 

The case is being investigated under the Immigration Act 1959/63 and the Merchant Shipping Ordinance 1952.

 

Photo credit: Malaysian Maritime Enforcement Agency
Published: 23 May, 2025

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LNG Bunkering

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Milestone was achieved by Shell’s LNG bunker barge “Haugesund Knutsen” supplying the “Mein Schiff Relax” cruise ship at Port of Barcelona, says Dexter Belmar of Shell.

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Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Energy giant Shell recently conducted its first LNG bunkering operation for TUI Cruises in Barcelona, according to Dexter Belmar, General Manager and Head of Global Downstream LNG on Thursday (22 May).

He said the milestone was achieved by Shell’s LNG bunker barge Haugesund Knutsen supplying the Mein Schiff Relax cruise ship.

“Barcelona, one of Europe and the Mediterranean’s leading cruise ports, is also a key LNG bunkering location for Shell as we help more cruise ships transition to lower-emission fuels,” he said in a social media post. 

“A huge thank you to Royal Caribbean Group for their trust, and to Knutsen and Port of Barcelona for their collaboration in making this bunkering safe and efficient.”

Shell wraps up its first LNG bunkering operation for TUI Cruises in Barcelona

Belmar said LNG is leading the way as the preferred alternative bunker fuel in the cruise industry. 

“At Shell, we’re proud to support LNG fuelling needs at 26 locations worldwide, including major cruise ports like Bahamas, Barcelona, Canaveral, Everglades, Jamaica, Miami, Singapore, Southampton, and Tenerife,” he added. 

 

Photo credit: Shell
Published: 23 May, 2025

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