The Shanghai International Energy Exchange (INE) on Thursday (26 November) signed an agreement with PetroChina International Co Ltd for the overseas delivery for its low sulphur fuel oil (LSFO) futures contract, reported Reuters
The partnership is a consensus on a first overseas delivery for the bunker fuel as an “important foundation” towards China’s futures delivery “going global”, said the INE.
This would be the first time a Chinese futures contract would be deliverable outside of China, which could boost the liquidity and increase the pricing influence of the low-sulphur fuel oil contract.
The partnership marks the first time a futures contract in China can be deliverable outside of China, and would boost liquidity and flexibility for the contracts, as well as help to influence pricing for bunker fuel.
While the INE statement did not name the specific storage sites or delivery points, it cited that Petrochina had distribution centres for bunker fuel oil Zhoushan, as well as overseas in Singapore and the UAE.
The Shanghai INE gained approval from the China Securities Regulatory Commission to list its LSFO futures contracts in June this year, and at that time the Commission specified the fuel in contracts open for trade must be of domestic origin.
Related: Shanghai INE mulls Singapore port as delivery location for LSFO futures contracts
Related: Shanghai International Energy Exchange confirms listing date of LSFO futures contracts
Related: China Securities Regulatory Commission approves INE’s LSFO futures contracts
Related: Shanghai INE VLSFO futures project enters milestone, trading simulations to start in June
Photo credit: Edward-he
Published: 27 November, 2020
The top three positive movers in the 2020 bunker supplier list are Hong Lam Fuels Pte Ltd (+13); Chevron Singapore Pte Ltd (+12); and SK Energy International (+8), according to MPA list.
‘We will operate in the Singapore bunkering market from the Tokyo, with support from local staff at Sumitomo Corporation Singapore,’ source tells Manifold Times.
Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.
Claim relates to deliveries of MGO to the vessels Pacific Diligence, Pacific Valkyrie, Pacific Defiance, Crest Alpha 1, and Pacific Warlock between March 2020 to April 2020.
3,490 mt of LSFO from Itochu Enex was lifted at Universal Terminal; the same bunker stem was bought by Global Marine Logistics and delivered by bunker tanker Juma to receiving vessel Kirana Nawa.
Representatives of Veritas Petroleum Services, Maersk, INTERTANKO, ElbOil Singapore, and SDE International provide insight from their respective fields of expertise on what lies ahead.