Zhoushan Oil Pipeline Co was recently established in Zhoushan, East China's Zhejiang province, local media reported on Feb 2.

The company is co-funded by State-owned Zhoushan Communications Investment Group Co Ltd and two other companies.

As existing oil and gas pipelines do not meet the needs of the Huangzeshan Island-Yushan Island green petrochemical base, the new company's priority is to invest 1.6 billion yuan ($248,000) into building a crude oil pipeline for the base.

With a total length of 52.35 kilometers, the pipeline is expected to deliver 20 million metric tons of crude oil to the base each year.

The company will also improve sharing of oil and gas pipelines in Zhoushan, as all local companies should have equal access to the pipelines paved by the company. This will create a fairer business environment in the city.