China’s state-owned oil firm Sinopec has confirmed that its Guangzhou refinery has started producing very low sulphur fuel oil (VLSFO) for the shipping market.
Reuters reported that a 1,600-tonne cargo was Guangzhou refinery’s first batch of VLSFO production, delivered to a storage tank at Sinopec Fuel Oil Sales Co via pipeline.
Sinopec said the VLSFO at Guangzhou refinery is a blend of residual oil and diesel.
Related: Sinopec QiLu Petrochemical delivers first batch of low sulphur fuel
Last month, Sinopec QiLu Petrochemical Company delivered its first batch of VLSFO in Shandong.
The parent firm Sinopec had announced in June last year that it intends to ramp up VLSFO production capacity to 10m tonnes and 15m tonnes by 2020 and 2023, respectively.
The need for ships to use VLSFO follows the IMO 2020 global regulation that mandates all ocean-going ships to burn marine fuels with a maximum sulphur content of 0.5%.
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