Specifically, China National Petroleum Corporation has planned a low-sulphur fuel oil supply of 4 million tonnes a year. The first batch of the fuel was dispatched from its Dalian Petrochemical plant in early June.
Jiang Yan, chairman of Shanghai Futures Exchanges commented that
The contract will help expand China’s pricing influence in global bunker fuel oil market and help China to improve its maritime transportation capacity.
He continued that bunker fuel markets will be provided with more opportunities and also challenges in 2020.
China may reverse the current situation of fully relying on imports on high-sulphur bunker fuel oil and become the world’s biggest low-sulphur heavy bunker fuel oil supply centre
As IMO's 2020 sulphur cap regulation is approaching companies aim for fuel in line with the new regulation. For instance, Sinopec Group announced last year it would start supplying IMO 2020 bunker fuel in 2019, while also all of its supplies would be compliant with IMO's sulphur cap.
Moreover, Reuters stated that the low-sulphur fuel oil contract will be China’s second bonded oil futures followed by crude oil futures on the Shanghai International Energy Exchange, a ShFE subsidiary.