Sinopec ups VLSFO production to capture Chinese bonded bunker market share says an article on Manifold.
To boost very low sulfur fuel oil (VLSFO) production
China Petroleum & Chemical Corporation (Sinopec) has started a program to encourage local subsidiary refineries to boost very low sulfur fuel oil (VLSFO) production.
It noted Sinopec offering its refineries a reward of 150 yuan ($23.35) for every tonne of VLSFO produced.
The development is seen as an effort to capture increased market share of the local marine fuels market, and a coping mechanism to help prevent local refineries from being idle due to diesel oversupply.
“With the massive diesel surplus in the domestic market, Sinopec does not need to process that much diesel itself so why not make use of the processing capacity to boost marine fuel?” said a senior source.
Though the duration of the bonus scheme is unclear, the move has resulted in Zhoushan’s VLSO bunker fuel prices being offered at a discount to that of a similar product lifted from Singapore port.
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Source: Manifold Times
