ZHOUSHAN, China Oct 18 (Reuters) -
* China Marine Bunker Co, a unit of PetroChina , says it has started to supply bonded low-sulphur fuel oil (LSFO) to all major Chinese ports before tighter fuel standards come into force in 2020
* General Manager Sun Hougang said at an industry conference in Zhoushan that more than 10,000 tonnes of LSFO had already entered the company’s bonded warehouses in China
* International Maritime Organisation (IMO) rules ban ships from using fuel oil with a sulphur content above 0.5% from Jan. 1, 2020, compared with 3.5% now, unless equipped with exhaust “scrubbers” to clean up sulphur emissions.
* Demand for LSFO is expected to increase from mid-late November ahead of the IMO 2020 deadline, Sun said, adding that bunker fuel suppliers’ financing needs were set to rise by 20-30% after IMO 2020 due to higher costs
* Eight of PetroChina’s refineries and 10 of rival Sinopec’s are capable of producing LSFO, Sun said; Seven plants have so far carried out trial output, producing 37,000 tonnes, he added.
* LSFO produced by PetroChina will mostly be sold via China Marine Bunker after IMO 2020, Sun said (Reporting by Muyu Xu and Tom Daly; Editing by Mark Potter)