China’s largest bunkering port of Zhoushan has awarded a bonded bunker supply licence to global trading firm Trafigura, says an article published in argusmedia.
The latest award comes less than a month after Zhoushan issued a licence to PetroChina-Shang Gang, a 50:50 joint venture between major oil producer state-controlled PetroChina and Shanghai-listed Shanghai International Port (SIPG).
Latest International Company
Trafigura is the latest international company to enter the Zhoushan market. Fellow trading firms Vitol and Glencore, and major Total, have all set up joint ventures to develop bunker fuel operations at the port. Trafigura has been awarded its licence without needing to team up with a Chinese firm.
Bunker Volumes Increased
Zhoushan bunker volumes increased by 15pc to 4.7mn t last year, although they just fell short of the target of 5mn t. The local government has set a 7mn t target for 2021, supported by new bunker licences and storage expansions.
Intensifying Competition
The rise in the number of bunker suppliers is intensifying competition in Zhoushan and prompting complaints from some existing suppliers that is becoming harder to make a profit.
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Source: argusmedia
