Asia/Pacific News
China: More Fuel Oil Going for Export
An increase in Chinese fuel oil export quotas with the prospect of more to come bodes well for the country's emerging bunkering sector.
China has raised the allowances for low sulfur fuel oil quotas by about 30% in the first round for 2022 while more generous export quota allowances are likely to follow, according to price reporter SP Global citing industry sources.
The ministry of commerce (MOFCOM) issued 6.5 million metric tonnes (mt) of fuel oil quotas to CNPC, Sinopec, CNOOC, Sinochem and Zhejiang Petroleum & Chemical, allowing them to send tax-free, domestically produced barrels for bonded bunkering at Chinese ports.
The government has raised LSFO export quotas while cutting those for gasoline, gasoil and jet fuel because the fuel oil barrels will likely be sold at China's bonded ports for bunkering, a Beijing-based trader with a state-owned oil giant was cited as saying.
Sinopec won most of the fuel oil export quota increment in the first batch of export allowances, with the volume of its quota rising 60% on the year to 3.84 million mt, according to the report.
