Join our crew and become one of the 104,544 members that receive our newsletter.

Oil tanker in Ningbo Zhoushan port

China’s Zhoushan Port Plans Bunker Hub Expansion

Reuters
Total Views: 157
October 18, 2020

FILE PHOTO: A VLCC oil tanker is seen at a crude oil terminal in Ningbo Zhoushan port, Zhejiang province, China May 16, 2017. REUTERS/Stringer/File Photo

reuters logo

SINGAPORE, Oct 14 (Reuters) – Sales of marine fuel from the Chinese port of Zhoushan, the country’s top supplier of shipping fuel, in first nine months of 2020 rose nearly 18% from a year earlier, a local government official said on Wednesday.

Zhoushan supplied 3.26 million tonnes of bonded marine fuel from January to September, the official said, declining to be identified since he is not a spokesman.

China aims to build Zhoushan, an archipelago city in east China’s Zhejiang province, into a regional ship fuel hub to rival Singapore as the world’s largest shipping, or bunker, fuel centre.

But marine fuel demand took a hit during the first half of 2020 because of the coronavirus pandemic, recovering in the third quarter in part because of the more competitive prices offered at Zhoushan, the official said.

Zhoushan‘s supplies, of mostly very-low sulfur fuel oil (VLSFO) that meet the International Maritime Organization’s emission standards, were at parity to competing supplies in Singapore and $15-20 per tonne below South Korea, the official added.

Chinese refineries began in January supplying VLSFO, with sulfur content capped at 0.5%, to the bonded marine fuel market along the country’s coast, after Beijing offered tax incentives to boost local production.

VSLFO exports in August rose to 1.62 million tonnes, the highest this year, Chinese customs data showed last month.

According to Chinese commodities consultancy JLC, Chinese oil refineries produced over 5 million tonnes of VLSFO between January and August, with the annual volume likely to hit 9 million tonnes.

(Reporting by Chen Aizhu; Editing by Christian Schmollinger)

<em>(c) Copyright Thomson Reuters 2020.</em>

 

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 104,544 members delivered daily straight to your inbox.

Join Our Crew

Join the 104,544 members that receive our newsletter.