Asia/Pacific News
BP Deal Sees Sinopec Resume Supply of Bonded Bunker at Shenzhen: Source
A source from Sinopec Fuel Oil (Sinopec) Tuesday said that next month the company plans to resume supplying bonded bunker fuel at Shenzhen port in, ICIS C1 Energy reports.
"The resumption of bunker supply has been sped up by the establishment of the joint venture with BP," the source said.
Bonded bunker fuel supply was halted in April 2014, but the source says Sinopec is now scheduled to supply mainly IFO380 in June and possibly 500 cSt product in the future.
The plan is to temporarily transfer fuel from other ports to Shenzhen until operation of a bonded oil tank farm in Huizhou city next year, which was said to be able to store up to 200,000 cubic metres of bonded bunker fuel.
Market sources are reported as saying that Sinopec will face competition in bunker sales at Shenzhen due to high fuel transport costs.
"Bonded bunker prices at Shenzhen port have been relatively low and we do not expect a major impact from Sinopec's bunker sales at this port if the company does not enjoy a price advantage," a bonded bunker supplier at Shenzhen port was quoted as saying.
Earlier this month it was announced that the Singapore-based 50:50 joint venture between BP and Sinopec, BP Sinopec Marine Fuels Pte Ltd, would build upon the two company's existing infrastructure.
