China (Zhejiang) Pilot Free Trade Zone has become an important delivery location of the Shanghai Futures Exchange for crude oil and fuel oil. [Photo/WeChat account: china-zjftz]

Dading Oil Storage Co in Zhoushan, East China's Zhejiang province was recently approved by the Shanghai International Energy Exchange (SIEX) as a crude oil futures transaction warehouse, local media reported on Feb 21.

Dading Oil Storage Co has an approved 440,000-cubic meter storage capacity for crude oil. The company is also SIEX's designated futures transaction warehouse for both bonded high-sulfur and low-sulfur fuel oil.

Ye Tao, deputy manager of Dading's commerce department, said that the company is the first private one in East China to qualify to be a crude oil futures transaction warehouse.

Ye noted that it would expand Dading's businesses and assist Zhoushan to develop a full industry chain of oil products.

China (Zhejiang) Pilot Free Trade Zone, most of which is located in Zhoushan, has become an important delivery location of the Shanghai Futures Exchange (SFE) for crude oil and fuel oil.

Four oil product storage companies in Zhoushan have become the designated low-sulfur fuel oil futures transaction warehouses of SIEX, a subsidiary of SFE, with approved storage capacity of 570,000 cu m.

Both Dading and Sinochem Xingzhong Oil Staging (Zhoushan) Co are located in Aoshan oil storage and transportation base, which has grown into the distribution center of Zhejiang FTZ's bonded bunker oil, according to a worker at Zhoushan shipping and port administration.

In 2020, the base's bonded bunker oil supply amounted to 3.59 million metric tons, accounting for 76 percent of Zhoushan's total.