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Chinese bunker supplier Sinopec Zhejiang Zhoushan Petroleum, or Sinopec Zhoushan, aims to start supplying low sulfur bunker fuel with no more than 1% sulfur content in East China, such as Shanghai and Zhoushan, in the first quarter of 2014, a company source said Friday.

The source said the company was preparing for the launch but still needs government approvals.

The International Maritime Organization designated waters off North America as part of the Emission Control Area as of August 1, 2012. The policy requires vessels to use bunker fuel with a maximum sulfur content of 1%.

Firm demand is expected for low sulfur bunker fuel in China, the source added. Chimbusco is currently the country's sole supplier of low sulfur bunker fuel.

Sinopec Zhoushan will bring fuel from its domestic refineries instead of importing cargoes, the source said.

China sells about 800,000-1 million mt/month of bunker fuel across the country, excluding Hong Kong, industry sources said.