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

PetroChina SIPG Energy and Shanghai Fuyuan Fuel Oil became the first two companies to be granted the licences by Shanghai Municipal Commission of Commerce.

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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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Bunker Fuel Quality

FOBAS: High/off-spec ash found in ARA residual bunker fuels due to calcium

These fuels were bunkered in the second half of April from ports in the ARA region with tested ash ranging from 0.102 to 0.127%m/m; high calcium is a main contributor to the off-spec ash.

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Lloyd’s Register Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Thursday (8 May) released a bulletin regarding its testing on a number of fuels that have a high tested Ash content, above the 0.100%m/m limit for an RMG380 grade:

In recent days FOBAS has tested a number of fuels that have a high tested Ash content, above the 0.100%m/m limit for an RMG380 grade. These fuels were bunkered in the second half of April from ports in the ARA (Antwerp, Rotterdam, Amsterdam) region with tested Ash ranging from 0.102 to 0.127%m/m.

These fuels are all high sulphur residual fuels (>0.50% mass) with very similar properties and appear to be from the same source.

One common factor in all is the high Calcium which is a main contributor to the off-spec Ash in each case. Calcium ranged from 116mg/kg up to 181mg/kg. Sodium was also relatively high ranging from 50 to 86mg/kg., The fuels also had high acid numbers (TAN) ranging from 2.20 to 3.40mgKOH/g.

Often when we see high acid numbers (>2.00mgKOH/g) and high Calcium together this is due to naphthenic acids. These are present in the original crude oil and generally not considered any operational concern. Initial testing on some of these recent fuels show naphthenic acids to be present.

There are some additional points to clarify on the above:

  • Firstly, in relation to Calcium, it may be noted that ISO8217 lists a 30mg/kg limit for Calcium. It is important to note the full clarification in the standard however, where the Calcium limit only applies in conjunction with the Phosphorus or Zinc limits of 15mg/kg, used as a measure of ULO (Used Lubricating Oil) presence, rather than to limit the Calcium content on its own.
  • Sodium levels, although relatively high are all still below the 100mg/kg RMG380 grade limit.
  • On any high acid number fuel, it should also be noted that just because naphthenic acids are present, it does not rule out any other contamination or potential issues with the fuel. Additional attention should be given to the performance of the fuel injection equipment and component conditions during the use of such fuels
  • Although Calcium on its own is not a problem, at high levels where it increases the total Ash content as seen here, it can be an issue with increased Ash potentially leading to an increase in post combustion fouling and surging of turbocharger. This should not be allowed to accumulate in particular in the turbocharger, inlet grids, nozzle and blading.

So far we have not had any operation problems reported on the use of these fuels, however caution should be taken in particular to dealing with any increase in post combustion fouling as mentioned, and if further investigation into the nature of the acidic components present is required to confirm they are only naphthenic acids then detailed GCMS forensic testing could be carried out.

 

Photo credit: Louis Reed from Unsplash
Published: 9 May, 2025

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LNG Bunkering

Singapore: ITOPF and Britannia P&I Club conduct table-top workshop for LNG bunker spills

Both held a workshop where attendees planned a response to a spill scenario of LNG from an alternatively fuelled vessel as part of a new training exercise.

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Singapore: ITOPF and Britannia P&I Club conduct table-top workshop for LNG bunker spills

The International Tanker Owners Pollution Federation (ITOPF) on Wednesday (7 May) said it held a table-top workshop with Britannia P&I Club in Singapore where attendees planned a response to a spill scenario of Liquefied Natural Gas (LNG) as part of a new training exercise called HYDRO NEXUS. 

The half-day event saw team members from Britannia successfully responding to a spill of LNG bunkers from an alternatively fuelled vessel, who were assisted by the ITOPF team on how best to approach the response, taking into account the risks and hazards presented by this substance.

“The Britannia team were guided by ITOPF’s experts on the steps of an alternative fuel and HNS (Hazardous and Noxious Substances) response, including information gathering, risk assessment, appropriate PPE selection, and use of different techniques and equipment used in these spill scenarios,” it said on its website. 

“One key component of the exercise was to demonstrate the potential impacts and claims that the P&I insurers may face during an alternative fuel/HNS incident. Teams collated costs for loss of life and personal injury, clean-up and preventive measures, property damage, economic loss and environmental damage claims.”

 

Photo credit: International Tanker Owners Pollution Federation
Published: 9 May, 2025

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Decarbonisation

Singapore-based Berge Bulk installs carbon capture system on board bulk carrier

System, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System, designed to capture up to 15 tonnes of CO₂ per day.

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Singapore-based Berge Bulk installs carbon capture system on board bulk carrier

Singapore-based dry bulk owner Berge Bulk on Wednesday (7 May) said it has completed the installation of a carbon capture system on board its 63,000 DWT Ultramax vessel Berge Yotei.

The system, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System. It is designed to capture up to 15 tonnes of CO₂ per day, representing a potential 30% reduction in emissions during operations.

Unlike conventional scrubbers, the Filtree System removes both sulphur oxides and CO₂ from a vessel’s exhaust. CO₂ is absorbed into a reusable amine solution, which can be offloaded in port for regeneration or reuse. Potential applications include use in greenhouses, beverage production, and other industrial processes — contributing to a more circular carbon economy.

“Carbon capture is a key pillar of our decarbonisation strategy. While we remain committed to optimising fleet efficiency, installing decarbonisation technology, and switching to new fuels, we must also capture carbon at the same time.” said James Marshall, CEO of Berge Bulk. 

“We’ve been actively capturing carbon through nature-based solutions on shore for many years, now it’s time to also start capturing carbon on board.”

As the industry looks to decarbonise, Berge Bulk emphasised the need for collaboration across governments, ports, technology providers, and regulators to develop the infrastructure, protocols, and commercial models needed to support carbon capture at scale.

 

Photo credit: Berge Bulk
Published: 9 May, 2025

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