Page 8 - AsianOil Week 19 2021
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AsianOil EAST ASIA AsianOil
Sinopec incentivises VLSFO production
PROJECTS & CHINA’S state-run Sinopec Corp. is reportedly
COMPANIES offering to incentivise production of very low
sulphur fuel oil (VLSFO) among its refineries.
Sinopec is crediting CNY150 ($23.25) per
tonne of VLSFO produced at its refineries, Reu-
ters quoted three unnamed sources as saying on
May 12. They added that the credit was equiva- recording a discount to those in Singapore in
lent to around 5% of the spot marine fuel price recent weeks.
quoted at the port of Zhoushan, which is China’s “Already China’s largest marine fuel producer,
largest bunkering port. Sinopec’s strategy will keep weighing on the
Sinopec wants its refineries to ramp up Zhoushan market,” a trading manager at a rival
VLSFO production to take advantage of ris- firm told Reuters.
ing demand for the fuel as well as the fact that Zhoushan’s bonded bunker sales climbed by
some plant capacity has been shut down owing around 15% y/y in 2020 to 4.73mn tonnes, on
to an oversupply of diesel on the domestic the back of a surge in demand for VLSFO, indus-
market. try news outlet Argus reported in January. Spot
“With the massive diesel surplus in the trades of VLSFO, high-sulphur fuel oil (HSFO)
domestic market, Sinopec does not need to pro- and marine gasoil climbed to a combined daily
cess that much diesel itself, so why not make use average of 3,700 tonnes per trading day from
of the processing capacity to boost marine fuel?” 1,400 tonnes in 2019, official data from port
said one senior source. authorities showed.
Reuters cited Chinese traders as estimating The Chinese Ministry of Commerce awarded
that Sinopec had expanded VLSFO production in December 2020 5mn tonnes of VLSFO export
for the bonded market by 50% year on year in the quotas for 2021 to Sinopec, China National Petro-
first four months of this year to 2.5mn tonnes. leum Corp. (CNPC), China National Offshore Oil
The newswire added that Sinopec’s incentives Corp. (CNOOC), Sinochem and privately owned
had led to ex-wharf bunker prices in Zhoushan Zhejiang Petroleum & Chemical (ZPC).
OCEANIA
Comet wins CBM block in Queensland
PROJECTS & AUSTRALIAN independent Comet Ridge
COMPANIES has been awarded a new coal-bed methane
(CBM) exploration block by the Queensland
State government.
Comet said on May 10 that the 338-square km
authority to prospect (ATP) 2063, which will now
be called Mahalo Far East, was one of two the state
government had assigned to the company in Sep-
tember 2020 under preferred tenderer status.
Comet was awarded a 100% stake in Mahalo Mahalo Far East’s award follows that of
Far East, which is located north-east of the Mahalo North (ATP 2048) in April 2020 and
Mahalo Gas Project (MGP), for an initial term Mahalo East (ATP 2061) in September 2020.
of six years. Comet holds 100% of the two licences, which
Comet owns a 40% stake in the MGP, which is cover a combined area of 885 square km.
located inside the northern part of ATP 1191 and Commenting on the newly awarded ATP
consists of petroleum leases (PLs) 1082 (Hum- 2063, Comet managing director Tor McCaul
boldt) and 1083 (Mahalo). Australia Pacific LNG said that combining the development of the
(APLNG) has a 30% stake in the project, while Mahalo Hub area blocks would provide greater
Santos owns the remaining 30%. efficiency and economies of scale, as well as a
Comet said Mahalo Far East contained coals material injection of gas into the East Coast
that were generally deeper and had notably market.
higher gas content than the main Mahalo high Mahalo Far East also contains conventional
production fairway. These characteristics are gas targets beneath the coals, with Comet not-
expected to add a “very significant” amount of ing that appraisal work on the block’s CBM
gas in place volume to the company’s Mahalo resources would also look at the deeper targets’
Hub area portfolio. gas potential.
P8 www. NEWSBASE .com Week 19 13•May•2021
