China Invites Singapore Bunker Suppliers to Expand to Zhoushan Market

Zhoushan's bunker sales stood at about 6 million mt last year, up from 4.1 million mt in 2019. Image Credit: Zhoushan Marine Fuel Association

The authorities in China are seeking to persuade Singapore's bunker suppliers to expand their operations to cover Zhoushan as a means of growing marine fuel sales there.

The municipal government of the China (Zhejiang) Pilot Free Trade Zone, which includes Zhoushan, has been working on a project since 2021 to attract Singapore suppliers, a representative told Ship & Bunker this week.

As of last week, the government-tasked entity has now officially started reaching out to Singapore firms.

"In order to further accelerate the development of bonded oil business for international sailing ships in the China (Zhejiang) Pilot Free Trade Zone, with the approval of the municipal government, we are pleased to invite Singapore bunker suppliers to participate in applying for a bunkering licence," the representative said.

"The bunkering process will also be digitalized where no paperwork will be required.

"There will be significant discounts and grants from both China (Zhejiang) Pilot Free Trade Zone municipal government and EDB Singapore.."

Suppliers that successfully apply for a license will be permitted to charter and operate vessels from the current fleet of bunker delivery vessels approved by the municipal government.

Of Singapore's 42 licensed suppliers, about 12 have expressed an interest so far.

The municipal government is currently using Singapore's SS600 bunkering standard to regulate its bunker suppliers. But the representative said the SS648 standard, which requires the use of mass flow meters, will be brought in over the coming years.

"[SS648] will be implemented in stages within the next 5 to 10 years; however, should the supplier wish to use SS648 now, China (Zhejiang) Pilot Free Trade Zone municipal government will also support the implementation," the representative said.

The government has also partnered with Oil Spill Response Limited to provide pollution prevention policies.

China has been seeking to take a greater share of global bunker demand in recent years, offering tax relief on local VLSFO production as a means of increasing local supply at cheaper prices.

Zhoushan's bunker sales stood at about 6 million mt last year, up from 4.1 million mt in 2019.

For more information, contact hello@huachengfuel.com.