Updated on Jun 11,2020

Notice Regarding the Delivery of the Low Sulfur Fuel Oil Futures

To all Members and OSPs：

To ensure the smooth delivery for low sulfur fuel oil futures (LSFO futures), and in accordance with the Delivery Rules of the Shanghai International Energy Exchange, this notice is issued regarding the following matters concerning the physical delivery settlement of LSFO futures:

I. Delivery-Related Fee Items and Fee Rates

1. Storage fees are 3 yuan / ton • day and shall be collected by the Designated Delivery Storage Facility from the commodity owner or its authorized representative. INE reserves the right to adjust the rate of storage fees through announcements in view of market development.

2. The delivery fee for LSFO futures contracts will temporarily be updated to 0 from the date of listing to January 8, 2021.

3. Inspection fees shall be collected at the prevailing rate by Designated Inspection Agencies (with reference to the time of load-out) from the commodity owner or its authorized representative.

4. Other fees, such as port dues, port construction fees, and loading and unloading fees, shall be collected at the prevailing rate by relevant authorities (with reference to the time of load-out)from the commodity owner or its authorized representative.

II. Premiums and Discounts

No premium or discount is stipulated between LSFO which meets or exceeds required quality standards.

INE will pay close attention to changes and trends of the LSFO market, and adjust delivery grades, quality regulations, premiums and discounts in a timely manner.

III. Designated Delivery Storage Facilities

The table below lists current Designated Delivery Storage Facilities for LSFO futures and their contact information:

No.	Name	Office Location	Storage Location	Contact	Telephone	Fax
1	Sinochem-Xingzhong Oil Staging (Zhoushan) Co., Ltd.	Sinochem- Xingzhong Administration Zone, East Lincheng Aoshan Bridge, Dinghai District, Zhoushan, Zhejiang	Aoshan Island, Lincheng, Dinghai District, Zhoushan, Zhejiang	Xiao Bin Sun Chenchao	0580-2061786 13906807550 0580-2061858 18158599850	0580-2036444
2	Yangshan Shengang International Oil Logistics Co., Ltd.	Blocks DEF, 14/F, Huarun Times Square, 500 Zhangyang Road, Pudong New Area, Shanghai	Shenjiawan, Yangshan Deep-Water Port, Shanghai	Dong Wei Xu Tingting	021-68405123 13788931707 021-68405060 15921888108	021-68405190
3	Zhejiang Offshore Petroleum Reserve Co.,Ltd	No. 22 Yandun Industrial Zone, Cengang Street, Dinghai District, Zhoushan City, Zhejiang Province	No. 22 Yandun Industrial Zone, Cengang Street, Dinghai District, Zhoushan, Zhejiang	Ding Rong Xu Rongfen	0580-8710877 13857205955 0580-8710858 13567676865	0580-8710858
4	Dading Petroleum Logistics Co.,Ltd.	No. 496 Dongshan Road, Lincheng Street, Dinghai District, Zhoushan, Zhejiang	No. 496 Dongshan Road, Lincheng Street, Dinghai District, Zhoushan, Zhejiang	Cai Linbo Ye Tao	18626852579 13857217124	0580-8171161 0580-8171134

IV. Designated Inspection Agencies

The table below lists current Designated Inspection Agencies for LSFO futures and their contact information:

No.	Name	Office Location	Contact	Telephone	Fax
1	China Certification & Inspection Group Inspection Co., Ltd.	17/F, Sanyuan Building, 18 Xibahe Dongli, Chaoyang District, Beijing	Chen Hong Gu Chen	010-84603658 13801063685 010-84603548 13810060886	010-84603183
2	SGS-CSTC Standards Technical Services Co., Ltd.	16/F, Century YuHui Mansion, 73 Fucheng Road, Haiding District, Beijing	Chen Zhou Zhao Qi	0574-89070154 13306678519 0755-26392411 13821643138	0574-87777875
3	Intertek Testing Services Shanghai, Co., Ltd.	Building T52-3-2 North, 1201 Guiqiao Road, Jinqiao Development Area, Pudong New Area, Shanghai	Guan Lianjun Zhang Jian	0574-87836578 13306668721 0532-58715778 13869863179	0574-87840759
4	Technical Center for Industrial Products and Raw Materials Inspection and Testing, Shanghai Custom	1208 Minsheng Road, Pudong New Area, Shanghai	Zhang Jidong Li Chen	021-67120903 13918256560 021-38620750 13331978879	021-67120902

Shanghai International Energy Exchange

June 11, 2020