Bunker Fuel

JLC China Bunker Fuel Market Monthly Report (February 2024)

China’s bonded bunker fuel sales decreased in February, due to a rise in bonded LSFO prices, as well as the Chinese New Year holiday and severe weather in the north, says Beijing-based JLC.

Published

1 year ago

March 11, 2024

Admin

JLC China Bunker Fuel Market Monthly Report (February 2024)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for February 2024 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China’s bonded bunker fuel sales fall in February

China’s bonded bunker fuel sales decreased in February, due to a rise in bonded low-sulfur fuel oil (LSFO) prices, as well as the Chinese New Year holiday and severe weather in the north.

The country sold about 1.50 million mt of bonded bunker fuel in the month, with the daily sales down by 11.80% month on month to 51,641 mt, JLC’s data shows.

The sales by Chimbusco, Sinopec (Zhoushan) and China ChangJiang Bunker (Sinopec) slipped to 500,000 mt, 570,000 mt and 26,000 mt in February, while those by suppliers with regional bunkering licenses dropped to 361,600 mt, down from 495,000 mt in January. At the same time, SinoBunker sold about 40,000 of bonded bunker fuel, unchanged month on month, the data indicates.

China’s bonded bunker fuel exports rally in December 2023

China’s bonded bunker fuel exports rallied in December 2023, because of a relatively low base a month earlier.

The country recorded about 1.59 million mt of bonded bunker fuel exports in the month, jumping by 16.18% month on month, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Heavy bunker fuel exports amounted to 1.51 million mt in the month, accounting for 94.85% of the total, while light bunker fuel exports settled at 81,900 mt, accounting for 5.15%.

Suppliers with national bunkering licenses exported roughly 1.17 million mt of bonded bunker fuel in the month, accounting for 73.32%, with Sinopec Fuel Oil and Chimbusco taking 67.63%. In the meantime, enterprises with regional licenses exported about 424,100 mt, occupying 26.68%.

The month-on-month increase in the exports was mainly ascribed to a relatively low base in November when Chinese refiners cut their bonded bunker fuel exports to a ten-month low.

However, tighter export quotas and low-sulfur fuel oil (LSFO) supply limited the growth in December’s bonded bunker fuel exports.

On a year-on-year comparison, China’s bonded bunker fuel exports surged by 32.32% in December.

China exported a total of 19.66 million mt of bonded bunker fuel in 2023, growing by 3.06% from the previous year, accelerating from a rise of 1.09% in January-November.

(Note: There is no breakdown of the country’s exports for January 2024 yet, though the GACC has announced the combined exports for January and February.)

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Domestic-trade heavy bunker fuel demand plunges in February

Domestic-trade heavy bunker fuel demand plunged in February, as shipping demand was tepid during the Chinese New Year holiday and bunker fuel was still overpriced. Domestic-trade heavy bunker fuel demand was estimated at 360,000 mt in the month, a slump of 70,000 mt or 16.28% from a month earlier, JLC’s data shows.

At the same time, domestic-trade marine gas oil (MGO) demand settled at 120,000 mt, stable month on month, the data indicates. Domestic-trade light bunker fuel demand leveled off, and the inland shipping market stayed lukewarm.

Bunker Fuel Supply

China’s bonded bunker fuel imports tumble in December

China's bonded bunker fuel imports stood at 315,200 mt in December, a slump of 41.29% month on month and 23.92% year on year, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Though domestic LSFO output declined further, most distributors continued to cut their imports in the month amid high import costs.

South Korea topped all suppliers by shipping 95,400 mt to China in December, accounting for 30.26% of the latter's total imports, while Malaysia climbed to the second place with 88,600 mt, accounting for 28.11%. Iraq and Japan ranked third and fourth with 86,600 mt and 30,700 mt, making up 27.46% and 9.73% respectively.

Russia slipped to the fifth place with 13,000 mt, occupying 4.12%, while Singapore fell to the sixth place with only 1,000 mt, accounting for 0.32%.

China's bonded bunker fuel imports are expected to move lower in January 2024 because domestic LSFO production will return to normal after the release of the first batch of LSFO export quotas for this year.

(Note: There is no breakdown of the country’s imports for January 2024 yet, though the GACC has announced the combined imports for January and February.)

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Domestic-trade bunker fuel supply tightens in February

Domestic-trade heavy bunker fuel supply tightened in February, as blenders slowed down production amid the Chinese New Year holiday.

Chinese blenders supplied about 400,000 mt of domestic-trade heavy bunker fuel in the month, a decline of 40,000 mt or 9.09% from January, JLC’s data shows. Traders and shipowners reduced purchases after finishing pre-holiday restocking, forcing blenders to reduce their output at the beginning of the month. Most blenders continued to lower output during the holiday, and some even suspended production. Heavy bunker fuel supply did not grow much after the holiday as some blenders were still on vacation, also because of relatively tight supply of blendstock.

Similarly, domestic-trade marine gas oil (MGO) supply diminished to 130,000 mt in the month, down by 10,000 mt or 7.14% month on month, the data shows. Refineries’ enthusiasm for MGO production was still low in February, as domestic MGO prices dipped and cargo delivery was not smooth amid bad weather.

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JLC Network Technology Co., Ltd is recognized as the leading information provider in China. We specialized in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

Photo credit: JLC Network Technology
Published: 11 March 2024

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SMW 2025: Singapore to launch new standard for electric harbour craft this week

MPA and Enterprise Singapore will launch the Technical Reference 136 to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft, says minister.

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SMW 2025: Singapore to launch new standard for electric harbour craft this week

Minister of State for Transport Murali Pillai on Monday (24 March) said Singapore will launch a new standard for electric harbour crafts this week as part of Maritime and Port Authority of Singapore’s (MPA) efforts in facilitating decarbonisation for domestic harbour craft to achieve the republic’s national target of net-zero emissions by 2050.

“MPA and Enterprise Singapore will launch the new Technical Reference 136 this week to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft,” Murali said during his speech at the opening ceremony of the Singapore Maritime Week 2025 (SMW 2025).

“This will enhance the safety and interoperability of electric harbour craft charging infrastructure.”

This is one of the initiatives MPA is undertaking to prepare for the bunkering of alternative marine fuels and decarbonising Singapore’s domestic maritime sector.

The minister said Singapore is taking steps to support the use of various fuels by the industry and position Singapore as a leading bunkering hub for alternative fuels.

“Over the past two years, we have supported trials of alternative fuels such as ammonia and methanol. These have contributed to the development of new technical references and IMO guidelines to enable the safe and efficient use of these marine fuels,” he said.

“MPA and Enterprise Singapore published the new Technical Reference 129 on Methanol Bunkering earlier this month, and we plan to launch a new standard for ammonia bunkering later this year.”

He added MPA has also recently allowed licensed bunker tankers to carry and deliver biofuels up to B30.

“Pilots for up to B100 are ongoing, and we welcome bunker suppliers to engage in these pilots,” he said.

At the opening ceremony of SMW 2025, Senior Minister Lee Hsien Loong, together with Murali, also launched Singapore’s first Maritime Digital Twin, an advanced simulation model developed by MPA in partnership with the Government Technology Agency of Singapore (GovTech) that integrates real-time data to enhance decision-making and improve management of maritime operations in Singapore waters.

Murali said the digital twin will integrate data from different sources and provide a platform for information sharing. This will enable the development of tools to optimise port efficiency and reliability above, at and below the sea surface.

“For example, the digital twin will enable scenario simulations and dispersion modelling, which can inform standard operating procedures for the safe bunkering of alternative fuels such as methanol and ammonia,” he said.

The minister added MPA will roll out the digital twin to pilot users later this year, before progressive implementation for the wider industry.

“In future, we can extend this to the global maritime ecosystem through our Green and Digital Shipping Corridors with other countries and ports,” he said.

Photo credit: Maritime and Port Authority of SingaporePublished: 24 March, 2025

Alternative Fuels

TFG Marine welcomes first of four ‘L’ series IMO type II bunkering tankers of Consort Bunkers

TFG Marine to operate Consort Bunkers’ bunkering tanker “Pearl Lavender”, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, at Singapore port from April onwards.

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TFG Marine welcomes first of four 'L' series IMO type II bunkering tankers of Consort Bunkers

Global marine fuel supply and procurement firm TFG Marine on Friday (21 March) said it attended the delivery ceremony of bunker tanker Pearl Lavender at China Merchants Jinling shipyard in Nanjing.

The IMO type II chemical bunkering tanker newbuilding is amongst others under long-term time charter from Singapore-based bunker supplier and logistics services provider Consort Bunkers Pte Ltd (Consort).

"This state of the art vessel, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, will be operational at the Port of Singapore from April 2025, further advancing our product offering to our client base in the APAC region," said TFG Marine.

"As the first of four barges in this order, this investment builds on our commitment to low-carbon fuel bunkering infrastructure, reinforcing our vision for a multi-fuel future.

"With methanol, biofuels, ammonia, and other alternative fuels playing an increasingly significant role alongside traditional marine fuels, we continue to support the industry's transition towards cleaner energy solutions."

Manifold Times previously reported that Consort first contracted six ‘L’ series 6,500 dwt IMO Type II bunker tankers with China Merchants Jinling Shipyard (Nanjing) Co., Ltd. in April 2023.

The ‘L’ series of bunker tanker newbuildings gained recognition from the China Association of The National Shipbuilding Industry (CANSI) as amongst the Chinese shipbuilding sector’s top 10 innovative vessels for 2024.

Last year, TFG Marine announced the signing of a long-term time charter agreement with Singapore-based bunker supplier and logistics services provider Consort Bunkers for four newbuild bunker tankers.

Photo credit: TFG Marine
Published: 24 March, 2025

Alternative Fuels

RINA awards Type Approval to VINSSEN for maritime fuel cell stack

Approval of VINSSEN 60kW maritime fuel cell stack will accelerate the demonstration and commercialisation of its 120kW maritime fuel cell power generation system.

Published

7 hours ago

March 24, 2025

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RINA awards Type Approval to VINSSEN for maritime fuel cell stack

South Korea’s maritime decarbonisation technology provider VINSSEN on Friday (21 March) said it has received Type Approval from Italian classification society RINA for its 60kW maritime fuel cell stack.

The company said the approval will accelerate the demonstration and commercialisation of VINSSEN's 120kW maritime fuel cell power generation system.

Despite the absence of clear maritime hydrogen-related legal standards, the company has leveraged regulatory sandboxes to systematically conduct technology verification and rigorous certification procedures, demonstrating its technical expertise.

“The recent Type Approval from RINA not only strengthens international confidence in hydrogen fuel cell technology for eco-friendly ships but also marks a significant step toward full commercialisation,” it said.

“This milestone reflects the company's commitment to promoting hydrogen fuel cells as a key solution for reducing maritime carbon emissions.”

The certification process involved performance and environmental tests based on IEC standards, all of which VINSSEN successfully passed. The vibration test confirmed the system's durability under specific frequency and acceleration conditions.

Additionally, the dielectric strength test showed that the system could withstand high voltage without insulation failure, meeting all required standards.

“These challenging tests were successfully completed, confirming the reliability and safety of VINSSEN's fuel cell module for maritime and shipbuilding applications,” the company said.

Looking ahead, VINSSEN plans to accelerate the development of next-generation hydrogen fuel cell solutions, including a 150kW high-output fuel cell stack and an onboard fuel cell power generation system using reformed gas (75% hydrogen and 25% nitrogen). These innovations will increase the feasibility of applying MW-class hydrogen fuel cell systems to larger vessels.

A VINSSEN representative said: “This Type Approval is a key milestone for the commercialisation of MW-class maritime hydrogen fuel cell systems. We will continue leading the maritime market through ongoing technological innovation and the pursuit of global certifications.”

Manifold Times recently reported VINSSEN receiving an Approval in Principle (AIP) certification from the Korean Register (KR) for Korea's first tugboat featuring a hydrogen fuel cell propulsion system.

Photo credit: VINSSEN
Published: 24 March, 2025