Two sources: Zhejiang wins China’s first private sector fuel export license

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SINGAPORE / BEIJING (Reuters) – China has granted Zhejiang Petroleum and Chemical Corporation a license to export refined oil products, making it the first private oil refiner to obtain such a license, two well-informed sources said on Thursday.

This license allows the company to sell oil products directly to the international market, compete with state-owned refining companies, and contribute to alleviating excess supply pressure in the Chinese domestic market.

But one of the sources said that the company still needs to obtain a government share determining the size of its exports before it starts sending shipments.

Currently, only a few state-owned refiners are allowed to export refined oil products, including Sinopec, China National Petroleum Corporation (CNPC), China National Offshore Oil Company (CNOOC), Sinocom Group and China National Aviation Fuel Company.

Independent oil refiners have been pressing the government for a long time to allow it to export refined fuel.

“It is unlikely that other independent refiners will obtain export licenses,” said Wang Zhao, an oil analyst at the China-based SPLM Information Group. Zhejiang is an exception because it is located in a free trade zone with a special policy. ”

China established a trade area in the coastal city of Zhoushan in Zhejiang in 2017 to boost oil and gas trade.

Reuters could not reach Zhejiang Petroleum and Chemicals for comment.

Marwa Salam prepared for the Arab Bulletin – Edited by Moataz Mohamed





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