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China's Southern Petrochemical (Southernpec) is planning to begin retail marine fuel operations in Singapore from next month, Reuters reports.

According to an unnamed company official, the Guangzhou-based firm is waiting to receive its bunkering license from the Maritime and Port Authority of Singapore (MPA) in order to commence its retail fuel-selling business at the world's largest bunker port in July.

Southernpec, an affiliate of Sinopec Corp, 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.

Southernpec increased its floating storage capacity at the start of the year with the acquisition of the Southernpec 5. The vessel was reported to have been purchased from an unnamed Greek shipowner for approximately $14 million.

News of Southernpec's plans to become a licensed MPA supplier means the company is following in the footsteps of two other Chinese firms - Brightoil Petroleum and Petrochina - that have increased their activity outside of China and expanded into the Singapore market in order to raise sales volumes.

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

Earlier this month, 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.