The China (Zhejiang) Free Trade Zone (FTZ) in Zhoushan city, East China's Zhejiang province. [Photo/ zj.zjol.com]

The implementation plan for building an international oil trade center in the China (Zhejiang) Free Trade Zone (FTZ) recently gained approval from the government, after over a year of research and preparations, local media reported. 

According to the plan, the international oil trade center will be based on the Zhejiang Petrochemical Trading Center, to develop a commodity trade market in line with international rules, with Chinese characteristics, and manageable in risks, thus promoting the nation's global allocation of commodities, especially oils. 

The trade center will undergo four stages of development, from spot oil trading to forward trading based on spot oils, over-the-counter (OTC) trading ecosystem building, and OTC derivatives trading. 

Meanwhile, key supplementary work will also be on the agenda, such as building an integrated service system and arranging the digital trading system layout. 

Zhejiang Petrochemical Trading Center is the only trade venue approved by the provincial government to specialize in petrochemical trade. 

The zone has achieved sound business performances this year, with the settlement of 869 petrochemical companies who saw a year-on-year increase of 204.09 percent in trade turnover, 151.64 percent in trade volume and 182.05 percent in tax contribution during the months from January to August. 

The center has also sought cooperation with exchanges from Singapore, Dubai and India, and established partnerships with seven financial institutions and six warehousing companies.