Asia/Pacific News
Slow Progress on China's Bonded Bunker Market Plans
The Chinese government is making slow progress on plans to open up its bonded bunker market to new players according to the Shanghai Shipbrokers Association (SSA), which is also involved in drafting the new regulations.
"The central government is still studying the plan and formulating the rules and we don't expect a result in the short term," Bloomberg quoted Liu Xunliang, SSA secretary-general, as saying.
China Marine Bunker (PetroChina) Co. Ltd was the sole bonded bunker supplier in China until 2006 when 4 new suppliers entered the market.
The number of bonded bunker suppliers could now double, with the ministry receiving applications from five more companies, according to Zhou Yiqing, a vice general manager in the bunker department at Sinopec Fuel Oil Sales Co..
Amongst the applicants is China National Aviation Fuel Group Corp. (CNAF) who says it has become the largest aviation fuel supplier in Asia.
Liu Xunliang added that due to a lack of experience and expertise in global bunker markets, the new applicants may not yet be ready to start bunkering operations.
According to Liao Na, Information Director at C1 Energy, China's bonded bunker sales were over 4.66-mil metric tonnes (mt) in the first half of last year, with the company projecting it could reach annual sales of 18.5 million mt in 2014.
China's bonded bunkers are exempt from import taxes because they are sold to vessels traveling overseas.
