State Council, Official Reply on Several Measures to Support the Open Development of the Entire Oil and Gas Industry Chain in the China (Zhejiang) Pilot Free Trade Zone
国务院关于支持中国（浙江）自由贸易试验区油气全产业链开放发展若干措施的批复
April 09, 2020 | BY
Susan MokChina takes steps to promote international oil and gas trade
Issued: March 26, 2020
Main contents: The Official Reply supports cooperation between the Free Trade Zone (FTZ) and domestic futures and spot trading platforms, such as the Shanghai Futures Exchange, in jointly developing spot commodities trading markets that mainly concentrate on oil products (Article 12).
It also supports the development of a liquefied natural gas (LNG) receiving center to provide security for the domestic natural gas supply (Article 4).
It suggests the construction of an international energy trade and transaction platform to promote the accelerated development of international oil and gas trading in the FTZ and develops a natural gas trading platform to establish an influential presence in international LNG trading (Article 14).
The Official Reply supports the FTZ in engaging to an appropriate extent in refined oil product exports, and permits existing qualified integrated refining-chemical enterprises in the FTZ to engage in non-state export of their refined oil byproducts on a trial basis of which the export volumes are arranged on an annual basis in view of circumstances (Article 6).
Subject to the presence of sound risk prevention measures, domestic and foreign enterprises in the industry are permitted to enter the FTZ spot commodities trading market to engage in trading (Article 13).
The Official Reply also supports the launching of a qualified foreign limited partnership (QFLP) pilot project in the FTZ, and permits institutional investors of relevant countries that settle commodities trading in renminbi to convert offshore capital into renminbi funds to invest in domestic private equity (PE) investment funds and the venture capital (VC) market once they have completed the examination and approval of their qualifications and the regulatory procedures for foreign exchange fund (Article 20).
Related legislation: General Plan for the China (Zhejiang) Pilot Free Trade Zone and Opinions on Several Matters Concerning Promotion of the Reform of the Management of Mineral Resources (Trial Implementation)
clp reference: 4310/20.03.26 issued:2020-03-26This premium content is reserved for
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