China to issue more licenses for marine fuel operators

China, which wants to boost its share of the global marine fuel market, will issue additional licenses for marine fuel operators. Zhang Jianshu, general manager of China Marine Bunker or Chimbusco, said the Ministry of Commerce is currently reviewing applications for five potential marine fuel operators which include China Aviation Oil Import & Export, China Arts Huahai Import & Export, Shanghai Longyer Fuels, Shanghai Fuel and Dalian Xingyuan Marine Fuel. The new licenses are expected to be issued by September. Chimbusco, a joint venture between Chinese oil major PetroChina and shipping giant Cosco Group, currently accounts for more than half of the country’s duty-free fuel sales to ocean-going vessels. Its rivals include Hong Kong-listed and privately controlled Brightoil Petroleum (Holdings), Jiangsu province-based private enterprise CNPC and Tafo Petro, China Changjiang Bunker Sinopec, China Shipping & Sinopec Suppliers and Sinopec Zhejiang Zhoushan Petroleum. State-backed oil major Sinopec, with one wholly owned unit and two joint ventures, entered the market last year. It has been aggressively grabbing market share by undercutting Chimbusco’s prices. (July 9, 2011)