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China firms enter deals to secure VLSFO supply from overseas oil majors

24 Dec 2019

China Marine fuel suppliers such as Chimbusco, PetroChina and Sinopec Corp are importing very low sulphur fuel oil (VLSFO) from international oil majors including Shell, Uniper and Freepoint to meet demand for the first quarter of 2020, according to Reuters.

PetroChina has secured close to 1 million metric tonnes (mt) of 0.5% sulphur content fuel oil from Dubai-based Uniper Energy, a united of Germany’s Uniper, and Freepoint.

Chimbusco, meanwhile, has secured VLSFO from companies including Shell to cover bunker sales in the following months.

Sinopec has built the smallest inventory compared to PetroChina and Chimbusco.

“China continues to buy the (low-sulphur) fuel in bulk from Singapore as local tax legislation deters Chinese refiners from selling into the bunker (shipping) fuel market,” said consultancy Energy Aspects in a note, as quoted by Reuters.

China’s state refiners have pledged to produce a combined 14 million tonnes of VLSFO for 2020.

Related: China: Chimbusco readies VLSFO supplies for next three quarters

Picture credit: Manifold Times
Published: 24 December, 2019

 

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