China issues first batch additional LSFO export quota
The Ministry of Commerce in China recent issued the first batch of additional low sulfur fuel oil (LSFO) bunker export quota in 2021 totaling 3.00 mil mt. Sinopec received a quota of 2.05 mil mt while the quota for PetroChina and China National Offshore Oil Corporation was 730,000mt and 220,000mt respectively.
According to industry sources, Sinopec refineries have increased their production capacity for LSFO. After using up the first batch of its export quota in mid-May, Sinopec applied to the Ministry of Commerce for a second batch of quota. The usage volume of the five companies that received the quota varied. Sinochem and Zhejiang Petrochemical did not produce LSFO in 2021 so far. As a result, the Ministry of Commerce only released the first batch of additional export quota to Sinopec, PetroChina and CNOOC whose usage volume is high.