Report: Sinopec Eyes 100 New Barges for LSFO Supply

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Energy and chemical company China Petroleum & Chemical Corporation (Sinopec) is allegedly looking to add 100 barges to its fleet over the coming three years to be able to supply IMO 2020 compliant marine fuel.

The company would order 50 vessels at Chinese shipyards and charter another 50 barges, Reuters reported citing an unnamed shipping executive from China as saying.

The 50 ships to be built will have a deadweight of 8,000 to 10,000 dwt and will cost about USD 571.91 million. The chartered barges will be smaller, ranging from 3,000 to 4,000 dwt.

Earlier this year, Sinopec announced that it would be producing 10 million tons of low sulfur marine oil (LSFO) in 2020 to supply the global market. The company also revealed plans to increase its marine fuel producion capacity to 15 million tons by 2023.

Sinopec will be supplying LSFO at Zhoushan and other major domestic ports, while also establishing supply networks at more than 50 key international ports including Singapore.

Since 2017, the oil refining company has been conducting production R&D on low sulfur marine fuel. As informed, Sinopec refiners located in coastal regions will be carrying out the production of clean marine fuel.