Fri 6 Aug 2010, 07:52 GMT

Southernpec becomes accredited bunker supplier


Chinese firm is added to the official list of accredited bunker suppliers in Singapore.



The Singapore-based bunkering arm of China's Southern Petrochemical Co. Ltd. (Southernpec) - an affiliate of Sinopec Corp - has been included in the Maritime Port Authority of Singapore(MPA)'s list of accredited bunker suppliers.

Southernpec (Singapore) Pte Ltd. began delivering marine fuel to vessels in Singapore on August 1st after finally receiving its bunker license from the MPA last month.

Contact details for Southernpec have been provided below.

Southernpec (Singapore) Pte Ltd.

2 Shenton Way
#15-01 SGX Centre
Singapore 068804

Tel: +65 65343353
Fax: +65 65326696
linwf@southernpec.com

To obtain a new licence as a bunker supplier, the MPA requires that companies satisfy the following requirements:

- Have a minimum paid up capital of S$200,000;

- Have a certified Quality Management System for Bunker Supply Chain (QMBS) in accordance with the Singapore Standard 524;

- Satisfy a set of key performance indicators or have a good track record of bunkering operations in other ports, including bunker sales volume and customer base.

- Show commitment to own and operate at least one new double-hulled bunker tanker in Singapore.

- Show commitment to invest in storage facilities in Singapore.

"The MPA will consider issuing new bunkering licences (bunker supplier) to bona fide companies that will benefit the Singapore bunkering industry as a whole. In addition to the above requirements, factors such as the applicant’s resources and network, and ability to generate new market for the port of Singapore could be considered. The MPA welcomes global companies that satisfy the above requirements to apply for a bunkering licence, " the MPA says on its website.

Southernpec has been supplying marine fuel on an ex-wharf or wholesale basis since last year, using its two VLCCs - the Southernpec 3 and the Southernpec 5 - to store fuel oil offshore Malaysia.

The company is estimated to have been selling approximately 200,000 tonnes of product per month, the majority of which has been larger fuel oil cargo lots to local suppliers.

Bunker sales in Singapore - the world's leading bunker port - reached a new record of 36.5 million tonnes in 2009 and are on course to break through the 40 million tonne barrier this year following sales of 20 million tonnes during the first six months of 2010.

In addition to Southernpec, another two Sinopec affiliates - Sinopec (HK) and Unipec - are also trading fuel oil cargoes in Singapore.

In June, Sinopec also launched Sinopec Fuel Oil Sales Corp., a new sales and marketing arm which will be responsible for selling fuel oil production and bunker fuel in the growing Chinese bunker market.

The new Sinopec subsidiary is said to be planning new storage sites in order to build a bunker supply network that will enable the company to carry out deliveries in all major Chinese ports.

The launch of Sinopec Fuel Oil Sales Corp. follows the announcement in March that the oil giant was aiming to increase its market share of fuel oil in 2010.


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