Zhejiang Provincial Petroleum aims to take lead in Zhoushan's oil industry

Tugboats dock the oil tanker Eagle Varna carrying imported crude oil at the Zhoushan Port in Zhoushan, East China's Zhejiang province, on July 4, 2018. [Photo/IC] 

The Zhejiang Provincial Petroleum Co located in the China (Zhejiang) Pilot Free Trade Zone (FTZ) in Zhoushan, East China's Zhejiang province recently announced its plan to become a leading enterprise in the construction of an oil industrial chain in the zone.

The company, established on Sept 29, 2017, six months after the establishment of the zone, is the nation's first provincial State-controlled oil company and plays a vital role in the construction of Zhejiang FTZ's oil industrial chain. 

According to the plan, the company will enhance its oil storage capacity and strive to build a world-class base for crude oil storage and transportation on Huangzeshan Island, Daishan county by 2025.

It will strive to create an oil pipeline network covering the entire province of Zhejiang by 2025 and build a submarine oil pipeline that connects the Zhejiang FTZ with Shanghai by 2030.

To strengthen its energy supply services, the company will build 700 comprehensive energy service stations in the province within three years, 300 of which are projected to be built by the end of this year.

The concept of a comprehensive energy service station was pioneered by the company and includes services such as energy supply, motel accommodation, catering, shopping and tourism.

The design for the comprehensive energy service station [Photo/zhoushan.cn]

According to Gu Qiang, general manager of the company, Zhejiang Provincial Petroleum has developed a complete business system that includes oil storage, transportation and trade, as well as energy sales. It has also established a joint venture with the world's leading bulk commodity dealer, Glencore, to conduct oil trade business.

Zhejiang FTZ has become a hub for oil companies in China, with an additional 3,198 oil companies settling in the zone over the past two years.

Oil trade totaled 22 million yuan ($3.28 million) in the zone last year. The city's bunker fuel supply this year has so far reached 3.59 million metric tons, and Zhoushan Port has become the largest bunkering port in China.