Big money rolls into free trade zone from across the world

Innovative achievements

Zhejiang FTZ has taken further steps in system innovation. Currently, the FTZ has made 83 achievements in this regard. Some of the practices have then been promoted elsewhere by the State Council.

Last October, led by China Zheshang Bank, China's first bulk warehouse financial service provider in a free trade zone was founded in the Zhejiang FTZ. It is expected to upgrade the bulk commodity trading services provided in the FTZ.

Aiming to become a significant delivery point for crude oil futures and fuel oil futures, the FTZ has made great achievements since a crude oil futures contract began trading in China last March.

On March 7, the first crude oil future delivery was completed in Zhoushan. After the 380 bonded fuel oil futures contracts were listed and traded last July at Shanghai Future Exchange, Zhoushan made its first future delivery of 48,000 tons of 380 bonded fuel oil futures.

Pierre Lever, CEO of Argus Asia, said that Zhoushan is close to main shipping routes with a great number of marine fuel suppliers which gives the region a high level of service and competitive price. He added that the FTZ is especially suitable to the marine fuel industry.

Low carbonization and clean energy are global trends for energy consumption as the proportion of fossil energy, such as coal, continues to drop. The Zhejiang FTZ is meeting the trend as the region is speeding up a three-year action plan to supply low sulfur marine fuel oil.

The FTZ has also strived to develop the liquefied natural gas - or LNG - industry. ENN Zhoushan, which is China's first privately owned LNG import terminal, began operating last year. It is expected to become the biggest receiving and filling station in eastern China with a 10 million tons annual capacity.

On the fast track

A great deal of oil products cannot do without a fully equipped storage and transportation base, and Zhoushan is China's biggest. Its capacity is 28.79 million cubic meters.

The "One Center and Three Bases Demonstration Zone" consists of the Trading Center of International Oil Products and the bases of international petrochemical, international maritime services, and international oil product storage. It also has internationalized renminbi for cross-border trade in bulk commodities. This all gives the Zhejiang FTZ an advantage to develop the whole industrial chain.

In February, Saudi Aramco, the world's largest oil company, signed a memorandum with the Zhoushan city government to invest in the Zhejiang Refining-Chemical Integration Project. Located on Yushan Island, the project is planned to start production this year with 20 million tons refined in the first phase.

Besides accelerating oil industry chain layout in the region, Zhejiang FTZ is creating a friendly environment for businesses and providing global oil companies with high-quality and efficient service.

It took Zhang Hui, from Qinhuangdao, Hebei province two hours and six minutes to get his company registered at Zhejiang FTZ General Service Hall. This included business registration, official seals and invoices, opening a bank account and other processes.

According to the local customs, the time needed to enter and exit the port was controlled at 33.8 hours and 2.3 hours respectively. Both are faster than the average time of clearance at the customs in Hangzhou, capital of Zhejiang province.

Since the zone's establishment, there are 367 foreign companies set up in Zhejiang FTZ with a contractual investment of $5.05 billion and $410 million of pay-in investment. A large number of internationally renowned oil companies such as Saudi Aramco, BP, Total, Glencore and Trafigura Group have set up business there.