Recently, along with completion of the blending procedure for the oil from Petrochina Liaohe and WEPEC Refinery, Chimbusco successfully produced low-sulfur fuel oil by blending oil from domestic refineries with different tax code under the full supervision of Zhoushan Customs. This operation is the first of its kind in China and has opened up a new channel for domestic oil to flow into bonded-oil market and which enriched bonded oil resources in China.
According to the China Emission Control Zone Implementation Plan released In December 2018, fuel sulfur content used by ships to sail or anchor in designated area should not exceed 0.5% m/m. The International Maritime Organization (IMO) has also announced that 0.5% sulfur emission ceiling for global marine fuel oil will be enforced on January 1, 2020, marking a tremendous change for global bunker industry. In order to cope with this huge challenge and fulfill social responsibility, Chimbusco, China’s largest professional bunker supply company, has taken the lead and actively seized the market initiative. Early since 2016, Chimbusco began to lock in low-sulfur oil resources in the global market in advance. In 2017, Chimbusco became the first company to supply bonded low-sulfur and ultra-low-sulfur fuel in China. Since November 2018, Chimbusco realized steady supply of low-sulfur oil in Dalian, Qinhuangdao, Jiangyin, Yangshan, Zhoushan and Ningbo ports. At the same time, Chimbusco actively carried out research and development of low-sulfur fuel technology, including production and blending tests, thus accumulated a wealth of application data and advanced technical reserves for the construction of low-sulfur oil processing base.
Chimbusco endeavors to meet ship owners’ demand by securing resources. The blending and processing trade operation was carried out in the AoShan Base of the Sinochem XinZhong Oil Staging (Zhoushan) Co., Ltd. in the Zhoushan Free Trade Zone. Under the full supervision of Zhoushan Customs, Chimbusco successfully produced low-sulfur fuel oil in accordance with ISO international standards by using the low-sulfur blending materials from the refineries of Petro China. The fuel oil will be supplied to ships in Zhoushan.
Based on cooperation with refineries of Petro China, Chimbusco successfully found a way to obtain international standard low-sulfur fuel oil by blending materials produced by domestic refineries.
Since October last year, Chimbusco actively cooperated with 8+1 refineries of Petro China in many links including raw materials, production, blending, index control, testing, cost-benefit calculation, etc., paving the way for domestic produced low-sulfur oil to flow into the market. Low-sulfur resources produced by Petrochina Liaohe Refinery, WEPEC Refinery, Petrochina Dalian Refinery and Petrochina Jinxi Refinery have entered or are entering the market through various channels, which has enhanced the resources of Chimbusco.
This operation received strong support from the Zhoushan Municipal Government, Zhoushan Customs, PetroChina and Sinochem Xingzhong Oil Depot. This is the first case in the Zhoushan Free Trade Zone. This operation enhanced Chimbusco’s low-sulfur fuel oil supply capability in terms of production, import and blending. In the next step, Chimbusco will further deepen its cooperation with PetroChina's refineries, make full use of PetroChina's advantages in resources and blending processes and the policy of blending oil with different tax code in Zhoushan Free Trade Zone to expand production. On the other hand, it will continue to cooperate with major foreign oil companies to lock in more low-sulfur resources imported into China to meet the demand of ship owners.
