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Shanghai Becomes First Asia-Pacific Port to Offer Ultra-Low Sulfur Oil Refueling
A PetroChina bunker fuel unit has refueled a Cosco Shipping Lines vessel with ultra-low sulfur fuel oil at the deepwater port of Shanghai, making the eastern Chinese city the first in the Asia-Pacific region to offer bunkering services based on this cleaner-burning marine fuel.
PetroChina Fuel Oil loaded 875 tons of domestically produced ULSFO into the Cosco Pride container ship last Thursday, marking a milestone for the Port of Shanghai, according to an announcement by the administration of the Lingang Special Area of the China Shanghai Pilot Free Trade Zone.
The development is a step forward in the maritime industry's transition to greener fuels, such as green ammonia and biofuels. The International Maritime Organization's Marine Environment Protection Committee recently adopted stricter regulations requiring vessels sailing in the Mediterranean Sea to use fuels with sulfur content below 0.1 percent, down from 0.5 percent. This is expected to increase demand for lower-emission marine fuels.
With over 17 percent of global ocean liners and more than 24 percent of other vessel types operating in the Mediterranean, the new rules could generate demand for about 4 million tons of marine light diesel and ULSFO annually.
China is also advancing innovation in clean fuel technologies. China National Petroleum Corporation, PetroChina's parent company, has developed an ULSFO with sulfur content roughly 80 percent lower than other ULSFOs.
A CNPC executive said this refueling milestone shows that the Port of Shanghai now offers a comprehensive fuel supply system, including traditional oil, biofuel oil, ULSFO, liquefied natural gas, and green methanol. This foundation supports Shanghai's ambitions to become a global shipping hub and high-level service center.
Source: Yicai Global
