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Shanghai issues first batch of bonded bunkering licences to two local players

26 Aug 2022

PetroChina SIPG Energy Co., Ltd. and Shanghai Fuyuan Fuel Oil Co., Ltd. on Tuesday (23 August) became the first two companies to obtain bonded bunkering business licences from the Shanghai Municipal Commission of Commerce. 

PetroChina had previously established Shanghai Fuyuan Fuel Oil Co., Ltd. in the Yangshan Special Comprehensive Bonded Zone. With the licences, PetroChina’s goal is to achieve a bonded bunkering volume of 1 million metric tonnes (mt) per year, which is expected to bring in RMB 3.5 billion (USD 510 million) per year in commodity sales.

Cui Xiangmi, general manager of Shanghai Fuyuan Fuel Oil Co., Ltd., said obtaining the licence is of great significance for enterprises to open up the bonded marine fuel market in Shanghai. 

“Shanghai is an international shipping centre and the world’s largest container port, providing a very large market and space for the bunkering business of bonded ships,” he said.

“Our preliminary work has been sufficient. Once we’ve officially received the licence, we will strive to complete the first bonded fuel delivery operation in one month.”

Following this, Yu Ling, deputy director of the Foreign Trade Development Department of the Shanghai Municipal Commission of Commerce, expressed hope that more companies capable of carrying out bonded bunkering operations would apply for the local licence in Shanghai. “There will be a second and third batch following this,” he said.

On the same day, 17 key enterprises involved in the bonded bunkering business and other fields signed contracts to set up a base in Yangshan Special Comprehensive Bonded Zone, with a total investment of more than RMB 11 billion.

Based on these contracts, three companies intend to apply for local licences for bonded fuel bunkering for ships on international voyages in the zone.

Among them, Baowu Resources Co., Ltd., a subsidiary of Baowu Group, established ShanghaiBao Changran Energy Development Co., Ltd. in the Yangshan Special Comprehensive Bonded Zone. It plans to gradually put into operation more than 10 bunkering vessels, with the goal of achieving 700,000 mt/year of bonded fuel refuelling. 

The second is Xiamen Xiangyu Group established Xiangyu Petroleum (Shanghai) Co., Ltd. Lastly, Shanghai Xingaoying Energy Technology Co., Ltd., one of the seven self-operated members of the Shanghai Futures Exchange, which established Shanghai YouNaer Energy Co., Ltd in the Yangshan Special Comprehensive Bonded Zone, with the goal of releasing 500,000 mt/year of bonded fuel quantity.

Additionally, the bunkering of bonded liquefied natural gas (LNG) for ships on international voyages plays an important part of the bonded fuel supply service in Shanghai. 

As of August 15, PetroChina SIPG has completed 11 bonded LNG bunkering operations for international voyages at Yangshan Port, with a total bunker fuel volume of about 63,000 cubic meters (m3). 

Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.

Related: China: Guangzhou issues bonded bunkering business licences to two local players
Related: China: CNOOC Sales Shenzhen Co., Ltd obtains international bonded bunkering license


Photo credit: Dimitry Anikin on Unsplash
Published: 26 August, 2022

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