Tianjin Port Implements Bonded High-Sulfur and Low-Sulfur Fuel Oil Blending Business

The Tianjin People's Government recently announced the implementation of a new business model at the Nanjiang oil depot of Tianjin Zhongran Marine Fuel Co., Ltd., where 4,500 tons of high-sulfur fuel oil and 27,000 tons of low-sulfur fuel oil were transferred to bonded tanks for physical blending. This initiative is part of the city's efforts to enhance its free trade pilot zone and increase international influence. The bonded high-sulfur and low-sulfur fuel oil blending business allows for the physical blending of fuel oils with different sulfur contents to meet international ship requirements, reducing costs for enterprises and attracting more shipowners to fill up fuel oil at Tianjin Port.

Key Takeaways:

• The bonded high-sulfur and low-sulfur fuel oil blending business was implemented at the Nanjiang oil depot of Tianjin Zhongran Marine Fuel Co., Ltd., marking the first such business in the Tianjin Free Trade Pilot Zone since April 2022.
• The business involves the physical blending of fuel oils with different sulfur contents to meet international ship requirements for sulfur content, kinematic viscosity, density, pour point, and other indicators.
• The blending business can reduce the cost per ton of fuel oil by about US$20, resulting in a cost reduction of approximately US$60,000 for a container ship filling with 3,000 tons of fuel oil.
• The implementation of the bonded fuel oil blending business has improved the comprehensive service level of Tianjin Port and is a crucial step in building a core area of northern international shipping.
• Tianjin Port's customs department will continue to deepen reforms to safeguard the development of enterprises and assist the port in building a northern bonded fuel refueling center.

Statistics:

• 4,500 tons of high-sulfur fuel oil transferred to bonded tanks for physical blending
• 27,000 tons of low-sulfur fuel oil transferred to bonded tanks for physical blending
• Cost reduction per ton of fuel oil: approximately US$20
• Cost reduction for a container ship filling with 3,000 tons of fuel oil: approximately US$60,000
• Total cost reduction: approximately US$60,000 (based on the given example)

Sources:

• "Opinions on Implementing the Free Trade Pilot Zone Enhancement Strategy"
• Tianjin New Port Customs
• Tianjin Zhongran Marine Fuel Co., Ltd.
• Zhang Hui, director of the first comprehensive business department of Tianjin Xingang Customs
• Cao Zhengqing, deputy director of the Innovation and Development Bureau of Tianjin Free Trade Pilot Zone