- The BP and Sinopec marine fuel bunkering joint venture will start deliveries of high sulfur and low sulfur fuel oils to Fujairah next month.
- Sinopec started producing LSFO for bonded bunkering in January with a target production capacity of 10 million mt in 2020.
- Fujairah produces its own fuel oils, with three refineries located at or near the port.
The bunkering joint venture launched by BP and Sinopec five years ago is set to join the Fujairah market, according to price reporting agency S&P Global Platts.
Bunker fuel storage
BP Sinopec Marine Fuels has now rented storage space for bunker fuel at Fujairah and will start delivering high- and low-sulfur marine fuels there next month, Platts reported citing a source close to the matter.
The JV listed Fujairah among the ports it planned to serve upon its launch in 2015, but has focused on Asian locations so far.
Fujairah fuel oil prices
Sinopec is taking a greater role in the marine fuels space this year after a long-awaited tax rebate on fuel oil in China helped to incentivise the production and export of very low sulfur fuel oil.
- Fujairah produces its own fuel oils, with three refineries located at or near the port. VTTI’s refinery has a capacity of 82,000 b/d, Uniper Energy has two 40,000 b/d distillation columns, and Ecomar Energy Solutions has a 15,000 b/d plant producing naphtha, kerosene, gasoil and residual fuel.
- Fujairah fuel oil prices won’t be under pressure from the additional supplies, the source said, noting that the market recently has been reacting to crude oil prices. Delivered bunker fuel for marine fuel maximum 0.5% sulfur in Fujairah was assessed by Platts at $325/mt on July 8, up from $322/mt a week earlier.
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