Trafigura wins rare bonded bunker licence in China's marine fuel hub

This is a rare licence granted to a fully foreign-owned entity

  
Image used for illustrative purpose. A Sinopec oil tanker approaches cargo vessel Dongtai Baoze (L) berthed at an anchorage off Zhoushan port to supply it with bunker fuel, in Zhejiang province, China August 14, 2018.

Image used for illustrative purpose. A Sinopec oil tanker approaches cargo vessel Dongtai Baoze (L) berthed at an anchorage off Zhoushan port to supply it with bunker fuel, in Zhejiang province, China August 14, 2018.

REUTERS/Stringer

SINGAPORE - Commodities trader Trafigura has won a licence to supply bonded marine fuel at the port of Zhoushan, China's top bunker fuel hub, a company spokeswoman said on Friday.

This is a rare licence granted to a fully foreign-owned entity, making Trafigura one of about a dozen of mostly Chinese entities with such a permit to operate a ship fuel business in Zhoushan.

Taking advantage of the cleaner ship fuel rolled out globally since the start of 2020, China aims to build Zhoushan, an archipelago city in eastern China’s Zhejiang province, into a regional ship fuel hub to rival Singapore as the world’s largest shipping fuel centre.

The licence was granted to China-based unit Trafigura Energy (Zhejiang) Co Ltd, the company said.

Top commodities traders Vitol and Glencore have also set up ship fuel businesses in Zhoushan via joint ventures with local partners.

"This is a hard-won licence and the company takes a strategic view of Zhoushan (becoming a bunker hub)," a senior oil trader close to Trafigura said.

(Reporting by Chen Aizhu; editing by Jan Harvey and Jason Neely) ((aizhu.chen@thomsonreuters.com; +65 6870 3284; Reuters Messaging: aizhu.chen.reuters.com@reuters.net))


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