(Yicai Global) Feb. 22 -- Shell (Zhejiang) Petroleum Trading recently became the first wholly foreign-owned company to qualify to wholesale refined oil in China.
Gaining approval and obtaining this qualification means that Royal Dutch Shell can start buying and selling refined oil for corporate clients in the Chinese market, Zhejiang Daily reported. It will also steadily open and diversify the market structure in Zhejiang province.
One of the largest energy traders worldwide, Shell views the refined oil market in Zhejiang as being of great importance. The petrochemical giant currently operates 14 gas stations in the southeastern province, making it the one in which it operates the most service centers among all those where the company does business.
Shell is set on developing the local market because it values the upward trend of Zhejiang's booming economy, good business environment and standardized regulation of its refined oil market.
Shell first applied last year after acquiring a 30,000 cubic meter oil depot in Puyuan township in Tongxiang. Preliminary approval was forthcoming last month, but the local wholly-owned subsidiary of The Hague, The Netherlands-headquartered Royal Dutch Shell has now got the official seal.
The company will also technologically upgrade this oil depot in the next phase. It projects starting operations there at the beginning of next year.
Editor: Ben Armour