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Sinopec Fuel Oil Sales Corporation Ltd. - the sales and marketing arm of Asia's leading refiner Sinopec - has begun carrying out deliveries of bonded bunker fuel at the port of Rizhao, in Shandong province, according to industry reports.

The company is said to have put two refuelling barges into service at Rizhao, which is located approximately 170 kilometres southwest of Qingdao. The city of Rizhao is home to two international ports: Rizhao and Lanshan.

Sinopec Fuel Oil Sales leased a 22,000-cubic metre oil terminal at Lanshan port in November 2011 to support its bunkering business at Rizhao and Lanshan. This was followed by the launch of the company's bonded bunker operation at Lanshan in March 2012.

As a result of the launch of the two bunker barges at Rizhao, refuelling can now take place at anchorage as well as at berth.

Sinopec Fuel Oil Sales was launched by oil firm Sinopec in 2010. At the time, Sinopec said its new sales and marketing arm would aim to source bunker fuel from Sinopec's local refineries rather than relying on imported product. Sinopec also stated that Sinopec Fuel Oil Sales would be responsible for running fuel oil storage facilities and selling all fuel oil production from its refineries, thus targeting local 'teapot refineries' that import fuel oil to use as feedstock.

Sinopec also said at the time of the launch of Sinopec Fuel Oil Sales that 'greater efforts' would be made to expand and increase its market share for both fuel oil and jet fuel and that it would improve its sales of lubricants, asphalt and petroleum coke by 'leveraging its brand advantages'.

According to estimates, bunker sales in China last year were around 9.2 - 9.4 million tonnes. Ports in southern China are said to account for approximately 38 percent of the country's bunker sales, whilst the east region accounts for roughly 37 percent of total demand and Bohai Bay, in northern China, 25 percent.