China’s Sinopec sets up fuel oil unit in Sri Lanka

Hambantota-port

July 16, 2019 (LBO) – China Petroleum and Chemical Corp, Sinopec Corp has launched a fuel oil company in Sri Lanka as it looks to supply fuel to ships along a major maritime route, foreign media reported.

Sinopec says the market to supply fuel to ships has “huge” potential, citing the strategic location of Hambantota port on the Indian Ocean along a key shipping route between the Suez Canal and the Malacca Strait, which is transited by two-thirds of global oil shipments.

Sinopec has set a company-wide target of 10M metric tons of production capacity by 2020 to supply low-sulfur bunker fuels that meet cleaner emission standards set by the International Maritime Organization.