China will grant export quotas for refined oil products to non-state refineries in the Zhejiang pilot free trade zone, the state council said in a statement on Tuesday.
Fuel export quotas have only been granted to state-backed oil firms in the past. However, the statement did not specify volume, timeframe criteria in the new policy.
China last year issued three batches of refined oil product exports quotas but private firms including Zhejiang Petroleum & Chemical Co, which is based in Zhejiang free trade zone, were excluded.
The state council also said it would study raising export rebates for very low-sulphur fuel oil (VLSFO) and allow companies to carry out bonded oil blending within the free trade zone for the supply of clean marine fuel.
China has approved a long-awaited tax waiver on exports of VLSFO and more than a dozen refineries backed by state-owned PetroChina, Sinopec and CNOOC have exported the cleaner bunker fuel via Zhoushan port in Zhejiang free trade zone.
The council said it would bring in foreign exchanges, including New York, London, Singapore and Dubai, as strategic investors into the free trade zone, but did not give details.
The statement also encourage Zhoushan free trade zone to carry out trial business of liquefied natural gas (LNG) filling for bunkers.
The trade zone will cooperate with Shanghai Futures Exchange to launch physical trade on crude oil, refined oil products and fuel oil, the statement said.
Source: Reuters
