According to an article published in Reuters, China Marine Bunker Co, a unit of PetroChina has started supplying bonded LSFO to all major Chinese ports before tighter fuel standards come into force in 2020.
Tonnes of LSFO stocked by China
General Manager Sun Hougang said at an industry conference in Zhoushan that more than 10,000 tonnes of LSFO had already entered the company’s bonded warehouses in China.
International Maritime Organisation (IMO) rules ban ships from using fuel oil with a sulphur content above 0.5% from Jan. 1, 2020, compared with 3.5% now, unless equipped with exhaust “scrubbers“ to clean up sulphur emissions.
Demand further expected to increase
Demand for LSFO is expected to increase from mid-late November ahead of the IMO 2020 deadline, Sun said, adding that bunker fuel suppliers’ financing needs were set to rise by 20-30% after IMO 2020 due to higher costs.
Eight of PetroChina’s refineries and 10 of rival Sinopec’s are capable of producing LSFO, Sun said; Seven plants have so far carried out trial output, producing 37,000 tonnes, he added.
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Source: Reuters
