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ExxonMobil has leased fuel oil tank storage capacity at Tsing Yi oil terminal in Hong Kong, prompting speculation that the oil major may withdraw from the Hong Kong bunker market altogether.

ExxonMobil recently entered into an agreement with China's leading bunker supplier China Marine Bunker (PetroChina) Co. Ltd. (Chimbusco) to lease 280,000 cubic metres (cbm) of heavy fuel oil tanks.

Tsing Yi oil terminal has the largest fuel oil storage capacity in Hong Kong with 280,000 cbm, and an additional 220,000 cbm in light oil tank capacity.

Elsewhere in Hong Kong Sinopec (Hong Kong) has a 100,000 cbm fuel oil terminal and oil major Chevron owns 30,000 cbm of fuel oil storage.

According to industry sources, Tsing Yi oil terminal would be revamped before being delivered to Chimbusco towards the end of 2012. At present, Chimbusco rents around 60,000 cbm of tank capacity at the facility.

In terms of annual sales volumes, the Hong Kong bunker market is currently estimated to be around 5-6 million tonnes with ExxonMobil selling around 1.8 million tonnes per year.

The decision by ExxonMobil to lease its entire fuel oil storage capacity at Tsing Yi to Chimbusco has led to speculation regarding the company's future in Hong Kong.

It is thought that ExxonMobil may retain its fuel oil trading team in Hong Kong or quit the market and continue supplying fuel oil from its refineries in Asia on a free on board (FOB) basis.