Chimbusco secures 4m tonnes of IMO 2020-compliant low sulphur fuel

China’s state-owned bunker supplier Chimbusco revealed that it has secured at least 4m tonnes of very low sulphur fuel oil (VLSFO) and started initial supplies to all major Chinese ports from bonded storage, ahead of IMO 2020, reports said.

From 1 January 2020, all ocean-going ships will be required to burn bunker fuels with a maximum sulphur content of 0.5%, down from the current cap of 3.5%, under IMO’s Marpol Annev VI global regulation.

Thus far, Chimbusco’s bonded storage facilities have stocked up more than 10,000 tonnes of VLSFO, Reuters reported. Chimbusco general manager Sun Hougang was reported saying that the 4m tonnes of VLSFO will be sufficient to meet demand for the next three quarters.

The 4m tonnes of VLSFO has been secured from Chinese and international firms for the fourth quarter of this year and the first two quarters of 2020.

Sun is expecting to see demand for VLSFO picking up from mid to late November this year.

Read more: Chimbusco starts bunker deliveries using mass flow meters

Sun further shared that eight of PetroChina’s refineries and 10 of compatriot Sinopec’s refineries are capable of producing VLSFO, and seven of PetroChina’s plants had so far carried out trial output producing some 37,000 tonnes.

Posted 22 October 2019

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Lee Hong Liang

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Asia Correspondent Lee Hong Liang has joined Seatrade as its Asia Correspondent. Based in Singapore, he will provide a significant boost to daily coverage of the Asian shipping markets, as well as bring with him an indepth, specialist knowledge of the bunkering markets. Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and the ability to write hard news and feature stories.

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