SINOPEC announces goal of 10 m ton low-sulphur marine fuel oil production capability by 2020

On 5 June, the 48th World Environment Day, SINOPEC hosted a press release conference in Zhoushan, Zhejiang province, to officially announce the production capability of 10 million and 15 million tons of low-sulphur marine fuel oil in 2020 and 2023. 

Meanwhile, SINOPEC committed to enriching the sales and supply network. By 1 January 2020, Zhoushan and other China major ports will be fully covered with SINOPEC product availability, and more than 50 key overseas ports, including Singapore, will be covered with SINOPEC supply ability. The commitment will contribute 600,000 tons of sulphur oxide emissions reduction, equivalent to shutting down over 64 million National IV Standard trucks for a year.

Shipping emissions have become one of the major sources of air pollution in port cities and coastal areas. 

Data shows while a 10,000 TEU container vessel sails with a 70% load for 24 hours, it produces the equivalent amount of PM 2.5 against 210,000 National IV Standard trucks. The IMO-appointed research institute has forecasted that the global shipping industry is estimated to consume around 300 million tons of marine fuels in 2020. 

From 1 January 2020, MARPOL ANNEX VI has nailed the global sulphur-cap on marine fuels at 0.5%, down from the current 3.5%, which is 86% less than current emissions. The sulphur-cap evokes revolutionary changes to the global shipping industry. 

The global environment is expected to be improved fundamentally in the aspects ranging from port cities to atmosphere and oceans. Meanwhile, the major refiners are confronting opportunities and challenges. As a Category A Council Members of the IMO, China has marched a pioneer step and advanced one year ahead in implementing sulphur emission control in China’s coastal areas since 1 January.

SINOPEC actively promotes greener development in the global shipping industry and contributes to the ‘China Solution’. SINOPEC has launched a project in production research and development of the greener low-sulphur marine fuel oil in 2017. 

In the aspect of production, 10 SINOPEC refineries located in coastal cities have been projected to produce low-sulphur marine fuel oil. Shanghai, Jinling and Hainan, locations of some of the 10 refineries, have successively produced the IMO compliant marine fuel earlier this year. In the aspect of supply network development, the supply chain of SINOPEC’s own refined low-sulphur marine fuel oil has already been established in Shanghai and Zhejiang. 

Prior to 1 January 2020 China’s major ports will be covered with SINOPEC’s features such as regulatory compliance, sustainable availability, and environmental concern. Simultaneously, the supply chain will reach Singapore, Hambantota, ARA areas and up to 50 key overseas ports around the globe.

SINOPEC has the responsibility, the capability and the advantages to scale up the production and supply of low-sulphur marine fuel oil. 

“Reduction of shipping emissions is one of the key factors in the Blue Sky Protection Campaign,” said SINOPEC spokesman Lv Dapeng. “The production and supply of low-sulphur marine fuel oil is a green initiative that benefits the whole world and requires concerted global action.” 

Being the largest oil refining company, SINOPEC has advanced refining technology along with the advantage of having main refineries close to the consumption market along the coast and the river. Therefore, SINOPEC has the ability and advantages in realisation of the large-scale production of low-sulphur marine fuel oil and is committed to the prevention and reduction of marine and air pollution in China and the world.

SINOPEC has completed the development layout of the low-sulphur greener marine fuel oil supply network globally. SINOPEC Fuel Oil Sales Co. Ltd (Sinopec Fuel Oil) Executive Director and Party Secretary Liu Zurong said that SINOPEC Fuel Oil is the professional business arm with expertise in the global marine fuel business of SINOPEC. A well-established business network that covers China’s coastal ports has been set up. 

Meanwhile, the supply capacity of up to 40 major ports abroad has been developed. SINOPEC adheres to the principle of ‘every drop of oil counts’, with strict quality control in production, making SINOPEC a quality standard leader.

Furthermore, the Great Wall lubricate oil, a sub-brand of SINOPEC, has launched auxiliary products in compliance with SINOPEC low-sulphur marine fuel oil, which has obtained the OEM certification from international marine diesel engine manufacturers.

SINOPEC is consistently committed to the low-carbon ecological development strategy and assists with environmental guardianship by providing greener energy.

In 2011, SINOPEC introduced low-carbon development concepts into the corporate fundamental strategies. SINOPEC has taken the lead by publishing Environmental Protection White Book among domestic refiners in 2012. In 2013, SINOPEC allocated 20.9 billion CNY into ‘Clear water and Blue Sky’, a campaign which involves the largest non-recurring provisions and has achieved significant social influence in China. 

In 2014, SINOPEC launched the energy-efficiency enhancement program, with the goal of ultimately realising comprehensive improvement in energy utilisation by 2030. In 2016, SINOPEC Open Day was introduced, accumulating up to 3,000 times and 1.3 million visitors in total among its 65 sub-enterprises, becoming the largest public open day activity in China. 

In 2018, SINOPEC announced ‘Ecological Enterprises Actions’, the largest domestic whole value chain enterprise eco-actions, through which SINOPEC will further develop into a clean, efficient, low-carbon and self-circulatory enterprise, to continue forging green and low-carbon development.