Guangzhou (JLC), April 23, 2025--China has introduced a series of new policies to systematically promote the development of FTZs, with two policies related to the bunker fuel market, according to the “Opinions on Implementing the Upgrade Strategy for Pilot Free Trade Zones (FTZs)” released by the Communist Party of China (CPC) Central Committee and the State Council on April 21.
The two policies are to allow the blending of high-sulfur fuel oil (HSFO) and low-sulfur fuel oil (LSFO) under different HS codes by means of bonded logistics and to allow liquefied natural gas (LNG) to enjoy bonded policies as bunker fuel for international vessels.
Blending of bonded HSFO and LSFO
This policy allows the blending of bonded HSFO and LSFO under different HS codes by bonded logistics and under customs supervision. Bunker fuel prices in FTZs will be more competitive as the blending helps to lower costs, which will attract more ships to Chinese FTZs for fuel.
The policy can also address customized demand for bunker fuel, which will help improve fuel utilization efficiency, reduce enterprises’ operating costs and strengthen their global competitiveness. In addition, the policy will promote the coordinated development of shipping-related industries such as bunker fuel production, storage and transportation.
Prior to the policy, some areas such as Qingdao Port, Zhoushan Port, Yangshan Port and Guangzhou FTZ had begun to pilot the blending of HSFO and LSFO.
LNG enjoys bonded bunker policies
The policy allows LNG to enjoy bonded policies as bunker fuel for international vessels, which can reduce costs for LNG-powered ships and increase shipowners’ incentives to purchase clean energy.
First, the policy can promote the development of green trade and green shipping, and enhance China’s position in sustainable maritime practices. Second, the policy will attract more LNG-fueled ships to Chinese ports, thereby expanding the market shares of these ports and facilitating the development of infrastructure including LNG bunkering facilities and LNG transportation networks. Finally, the policy is expected to contribute to regional economic prosperity by creating more jobs and stimulating economic activities.
Some ports, including Yangshan Port, Shanghai Nangang Terminal, Ningbo-Zhoushan Port and Yantian Port, have launched pilot LNG bunkering over the past few years.
