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Guangzhou govt issues bonded bunkering licence to PetroChina subsidiary

07 Jul 2022

Editor’s Note: ‘PetroChina Fuel Oil Co., Ltd’ has been changed to ‘Guangzhou PetroChina Fuel Oil Co., Ltd.’ while ‘Guangzhou Municipal Government’ has been changed to ‘Guangzhou Municipal Bureau of Commerce’ to better reflect the accuracy of the names. 

The following article published by Manifold Times on 7 July 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:

Guangzhou PetroChina Fuel Oil Co., Ltd, a wholly-owned subsidiary of PetroChina Company Limited, on Tuesday (5 July) obtained a bonded bunkering business licence from the Guangzhou Municipal Bureau of Commerce. 

The leading supplier for bonded bunker fuel in the Nansha area became the third and latest company to be granted such a licence by the local authority after two other local players, namely Guangzhou Development Bibi Youpin Co., Ltd. and Guangzhou Circle Storage Co., Ltd., obtained the licence in February.

Guangzhou PetroChina Fuel Oil is capable of mobilising its refineries in South China to export about three million metric tonnes (mt) of low-sulphur marine fuel per year for ships on international routes, according to the local authority. 

“Compared with important oil supply ports in Singapore and other places, Guangzhou Port, as an international hub port, is currently experiencing a gap between the scale of bonded oil supply and port development so there is a huge market prospect,”  said a representative of Guangzhou PetroChina Fuel Oil.

“Nansha has complete petrochemical storage facilities and obvious location advantages. Nansha has become the centre of the world’s attention, and we have full confidence in the development of the bonded bunkering business in Nansha.”

Guangzhou Development Bibi Youpin Co., Ltd. and Guangzhou Circle Storage Co., Ltd. have completed bonded fuel delivery operations on 10 March and 12 April respectively. 

To date, the total bonded fuel delivery is about 1,120 metric tonne (mt) with a total value of about RMB 6.3 million. 

The recent development builds on the “Interim Measures for the Administration of Bonded Bunkering of International Voyage Vessels in Guangzhou” which was approved by local authorities in February this year.

The interim measures, introduced to enhance international trade at Guangzhou, allows local oil companies to obtain bonded bunkering business licences directly from the local government; instead of from the Chinese State Council.

Oil storage and distribution operations at Guangdong province are currently supported by the Nansha Xiaohu Island Petrochemical Zone. The area has 310 storage tanks with a total storage capacity of more than 3,174,300 cubic meters and 46 berths.

The Nansha area of ​​Guangzhou Port is located in the centre of the Greater Bay Area. It can reach Zhongshan, Zhuhai, Jiangmen, Foshan and Dongguan within an hour, and can cover more than 80% of the province’s ship refuelling market within five hours.

According to data by the local authority, Guangzhou Port has a net increase of 13 foreign trade container liner routes from January to June. 

As of June 2022, Guangzhou Port Group has a total of 199 container liner routes, including 154 foreign trade routes (16 in Europe, 13 in the Americas, 17 in the Middle East, India and Pakistan, 82 in Asia, 22 in Africa, and 4 in Australia and New Zealand) and 45 domestic trade routes. 

Nansha port area has opened 180 liner routes, including 148 foreign trade routes and 32 domestic trade routes.

Related: China: Guangzhou issues bonded bunkering business licences to two local players
Related: China: Guangzhou approves “Interim Measures” for more bonded bunkering firms
Related: China: Guangzhou bunkering volumes up 183% YTD on policy improvements
Related: Emergence of China’s marine fuels industry challenges Singapore’s dominant position
Related: Shenzhen plans acceleration of domestic and international LNG bunkering business
Related: Chinese government issues bonded bunkering permission at Guangzhou port

 

Photo credit: Manifold Times
Published: 7 July, 2022

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