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China: Enterprises optimistic of bonded bunkering market expansion, but highlight challenges ahead

Sinopec’s 2021 China’s Energy and Chemical Industry Development Report forecasts fuel oil demand to increase from 43 million mt tons to 49.5 million mt tons in 2025.

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The following article first published by Manifold Times on 16 December 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:

The State Council of China recently gave permission to start bonded bunkering operations for international sailing vessels at Shanghai and Guangzhou, said a Sunday (12 December) report by China Energy News.

A number of local enterprises applauded the development, and believed it  marks the expansion of the Chinese bonded marine fuel oil market.

In 2020, seven domestic Chinese ports ranked among the top ten global port throughput. Ningbo Zhoushan Port was the largest marine fuel oil filling port, with an annual filling capacity of 4.7 million metric tonnes (mt).

“The oil supply business [bunkering] process of each single ship in China is more complex and less convenient,” says Yu Xiao, fuel oil analyst at Jin Lianchuang.

“At the same time, China’s bonded marine fuel oil has been highly dependent on imports for a long time, resulting in a lack of price competitive advantage.

“This prevented, international sailing ships docked at domestic ports from conducting bunkering operations, so the market size [for bonded bunkering operations] did not match the economic development level of Chinese domestic ports.

In recent years, in order to improve the efficiency of oil supply, Chinese customs, maritime affairs, border inspection and port free trade zones have introduced a number of innovative measures in terms of customs and policies to improve the bonded marine fuel oil market.

Guangzhou Port is the largest comprehensive main hub and container port in South China. At present, it is linked to 131 international container liner routes.

In 2020, the cargo throughput at Guangzhou Port is 636 million tons, ranking fourth in the world. Therefore, Guangzhou also has unique advantages in developing its bonded marine oil market.

A 2021 China Energy and Chemical Industry Development Report released by Sinopec predicts China’s fuel oil demand to increase from 43 million mt to 49.5 million mt in 2025.

Sinopec Fuel Oil company said it will improve its supply capacity and the quality of marine fuel oil production to prepare for the expected increase in China’s bonded marine oil market

“With the continuous decentralisation of the international ship bonded refueling permit, more oil supply enterprises will enter the relevant industries in the future, and it is also necessary to effectively improve the storage, distribution and fleet renewal,” says Sinopec.

“Infrastructure and equipment should be improved to reduce the oil supply operation time and to improve the quality and efficiency of bunkering operations.

“The most important thing is to optimise the regulatory environment, improve the regulatory efficiency, and provide greater regulatory convenience for the receiving vessel so as to greatly reduce cost inefficiencies of the bunkering industry.

“Overall, on the whole, in the era of low sulphur China’s bonded shipping oil market will develop well and the prospects are relatively optimistic.”

Related: Chinese government issues bonded bunkering permission at Guangzhou port
Related: China: Zhejiang Oil Center launches price information service for the storage of oil products
Related: China: Pilot digital trial reduces documentation time for Zhoushan bunkering ops

 

Photo credit: MarineTraffic / kapoor nischint
Published: 16 December, 2021

 

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.

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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

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ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

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