Sinopec's vessel bunkering service capability was upgraded

On November 16, news came from Sinopec Fuel Oil Sales Co.
, Ltd.
(hereinafter referred to as Sinopec Fuel Oil) that the warehouse receipt of 5,000 tons of low-sulfur fuel oil futures has been cancelled from the delivery warehouse of Qingdao Port Shihua Company (hereinafter referred to as Shihua Company) in Shandong Port and loaded into the company's distribution ship, which is directly used for international bonded ship fuel bunkering
.
This marks that Sinopec Fuel Oil has successfully opened the first batch of futures warehouse receipt direct supply business in Qingdao Delivery Depot, and promoted Sinopec's ability to refuel ships on international voyages in Qingdao
.

According to reports, Sinopec fuel oil combined with the current bonded operation reality, the futures are now combined with the purchase of 5,000 tons of LU2211 futures contract and hold it for delivery at maturity
.
During the delivery period, Sinopec Fuel Oil, Shanghai Futures Exchange, Qingdao Customs and Shihua Company worked together to achieve the first direct supply
of warehouse receipts for delivery in Qingdao under the premise of ensuring the effective implementation of national policies and futures rules.

The relevant person in charge of Sinopec fuel oil said: "In the past, Qingdao could not be directly supplied by warehouse receipt, so we could only transfer it to other spot tanks in the oil depot in Zhoushan area through transport ships, and then ship them out according to the actual orders after storage
.
This not only has high logistics costs and long time periods, but also bears the loss of quantity in transportation
.
Since the warehouse receipt is directly supplied, oil can be loaded directly on the distribution barge at Qingdao Shihua Terminal to carry out bonded ship fuel filling for the outer vessel, which greatly saves delivery and logistics costs
.
”

At present, Sinopec Fuel Oil has not only deployed a bunkering network covering all ports open to the outside world in China, but also provided ship bunkering services
in more than 50 key overseas ports.
Since the implementation of the new sulfur content regulations by the International Maritime Organization, Sinopec's self-produced low-sulfur marine fuel has accounted for nearly 60% of China's low-sulfur marine fuel production, and the domestic bonded ship bunkering market share has also ranked first
in China.

At the same time, Sinopec Fuel Oil is also actively developing the international business
of the futures market.
In January 2022, Sinopec Fuel Oil became the delivery center of Low Sulfur Fuel Oil Futures Group of Shanghai International Energy Exchange Center, Sinopec Zhejiang Zhoushan Petroleum Co.
, Ltd.
as the delivery warehouse of Low Sulfur Fuel Oil Futures Group, and Sinopec Fuel Oil (Singapore) Co.
, Ltd.
as the delivery foreign delivery warehouse
of the Group.
Sinopec Fuel Oil has been actively exploring an integrated futures and cash business model
that combines domestic futures with domestic and overseas spot sales risk management.
After the direct supply business of Qingdao futures warehouse receipts was opened, the concerns of enterprises participating in low-sulfur fuel oil futures in the region where warehouse receipts were allocated were reduced
.
At the same time, it further stimulates the enthusiasm of the market to participate in low-sulfur fuel oil futures trading, and is also conducive to promoting the high-quality development of
the domestic bonded low-sulfur fuel oil market.