Zhejiang: Developing The Whole Industrial Chain Of Oil And Gas

At sea, the international cargo ships entered the anchorage position in turn, and the fuel oil was added. On the shore, the first phase of the Zhejiang Petrochemical Co., Ltd., whose annual refining capacity reached 40 million tons, has been put into operation, and the two phase project is speeding up the construction. This is a busy scene of oil production and trade in Zhejiang's FTA pilot area. The Zhejiang free trade zone has experienced great changes from scratch in the past 3 years.

Over the past 3 years, the 89 pilot tasks of the reform plan of the China (Zhejiang) free trade pilot area have been completed, 100% of the Zhejiang FTA pilot area has been completed, 116 systems innovation achievements and 116 practical cases have been formed, and 27 have been replicated nationwide, leading to the third batch of FTA.

On the occasion of the 3rd Anniversary establishment of the Zhejiang free trade pilot area, the CPC Central Committee and the State Council have given greater autonomy to Zhejiang's pilot free trade zone. Zhejiang FTA continues to use bonded marine fuel oil as a breakthrough point, firmly grasp the characteristics of the whole industrial chain of oil and gas, and speed up the construction of "one center, three bases and one demonstration zone".

Open market competition

14 oil companies and more than 6000 related enterprises have gradually formed a diversified oil and gas market with full competition from state-owned, private and foreign investors in the Zhejiang free trade pilot area. Zhoushan is closer and closer to the goal of "international refueling port".

In March 25th, Zhoushan's bonded fuel oil was $278.5 per ton, and Singapore's oil price was $280 on the same day. Previously, the price difference between the two countries has been up to $fifty or sixty per ton. As a result, most of the 100 thousand international ships passing through Zhoushan sea each year come to Singapore for refueling.

Leave market matters to the market. Zhejiang Free Trade Zone opened up the market to catch up. In June 2017, the Zhejiang free trade pilot area won the right to issue local licenses for oil companies, breaking the original single pattern of domestic bonded marine fuel oil management.

The oil companies are competing for the sails, and the big and small oil tanker is competing against each other. In the pursuit of oil companies, last year, the Zhejiang FTA pilot area completed more than 4 million 100 thousand tons of fuel oil filling, and Zhoushan port ranks among the first and eight largest refueling ports in the world. Under the impact of the epidemic, the amount of fuel oil used in the global ports decreased from 1 to February this year. However, the volume of refueling in the Zhejiang FTA pilot area increased, up nearly 12.9% over the same period last year, reaching 640 thousand tons. "Next, the Zhejiang FTA pilot area will refer to the experience of Singapore, manage the exit mechanism for local oil companies with local licenses, and eliminate enterprises with poor long-term operation and serious irregularities in their business." Cui Yiling, director of the port affairs administration of Zhoushan marine industry gathering area, said.

Reforming empowerment is the first step.

In March 18th, CNOOC Zhoushan Petrochemical Co., Ltd. received export rebates for 4298 tons of low sulphur marine fuel oil. Export tax rebate paragraph A total of 1 million 910 thousand yuan. So far, the Zhejiang FTA pilot area has completed the national first export business of ship fuel oil export tax rebate to the central government.

Over the past 3 years, almost every year, there has been such a golden breakthrough in the practice and exploration of Zhejiang FTA. The responsible person of the Zhoushan port comprehensive insurance area management committee said that in the past, the local reform in the oil and gas sector was relatively small and the industrial innovation was very difficult.

"For example, the policy of mixed fuel oil will reduce our oil price by US dollars per ton." The person in charge of PetroChina International Business Co., Ltd. in the Zhejiang free trade area, thanks to the policy gained in the Zhejiang free trade pilot area in 2018, they are now able to mix different raw materials of tax code to reduce the price of marine fuel oil. Since last February, the company has completed about 80 thousand tons of fuel oil blending.

"Institutional innovation also provides support for oil trade facilitation." Zhang Lei, chief of the Zhoushan customs bonded supervision department, for example, in the past, oil tankers could only be refueling for a foreign vessel at a time, and with new measures to facilitate customs clearance, oil tankers could pump more oil for more than one foreign vessel at a time. In the past 3 years, the Zhejiang pilot free trade zone has introduced a series of related measures throughout the country. Last year, the speed of petrol clearance was two hours faster than that in Singapore.

Implementation of the new deal to release dividends

Recently, the State Council issued a number of measures to support the opening up and development of the oil and gas industry chain in China (Zhejiang) free trade pilot area, which will speed up the reform of Zhejiang free trade zone.

"This is the opening up and development support measure tailored by the CPC Central Committee and the State Council for the Zhejiang free trade pilot area. It is also the first supporting measure to focus on Industrial Development in the third batch of FTA pilot areas." Zhu Jun, deputy director of the provincial self run trade office and chief economist of the Provincial Department of Commerce, said: "the new deal has pointed out the direction for us. Next we need to strengthen our practice and introduce more supporting policies." Ding Tao, deputy director of Zhoushan port and port administration, said the document required "innovate the international ship supply and bonded goods management business mode" and "enhance the competitiveness of international maritime services". For this purpose, they will strengthen coordination with departments such as commerce, customs and comprehensive protection areas, and launch a number of reform initiatives similar to "one ship and many capabilities".

"One ship and multi capabilities" is a comprehensive maritime business innovation initiated by the Zhejiang FTA pilot area at the end of last year. Liu Xiaolu, manager of the business department of Haitong Port Services Ltd, Zhoushan port, said that before they could provide maritime services for foreign ships, they could only use one ship for one purpose, and with the new policy, the ship could superimpose functions and reduce costs.

The construction of maritime service base will become one of the core tasks of the construction of Zhejiang oil and gas industry chain. Insiders say that the average cost of fuel oil filling costs per US $1 will have at least $15 in comprehensive marine service output. To grasp this huge market, we need to strengthen reform and innovation by customs, port and shipping departments.

"The new deal involves all sectors of the oil and gas industry chain in the Zhejiang free trade pilot area." The responsible person of the Zhejiang FTA pilot district management committee said that the policy promulgated is of great significance for promoting the reform of oil and gas system, protecting the national energy and economic security and promoting the internationalization of RMB in Zhejiang FTA. The implementation of these new policies as soon as possible will provide sufficient impetus for the accelerated development of Zhejiang free trade pilot area.