China’s Shanghai International Energy Exchange (INE) said it had approved storage capacity of a Sinopec Corp 0386.HK unit as an overseas storage facility for its low-sulphur fuel oil (LSFO) contract, according to a statement on Friday.

The exchange did not specify the approved storage capacity size of Sinopec Fuel Oil (Singapore) Pte. Ltd.

The INE added that it approved Sinopec Fuel Oil Sales Co. Ltd. as a group delivery centre, and Sinopec Zhejiang Zhoushan Petroleum Co. Ltd. as a group delivery factory. Both are located in China.

The group delivery factory has an approved storage capacity of 80,000 tonnes, and active storage capacity of 40,000 tonnes.

The INE had previously approved storage capacity in Singapore and the United Arab Emirates belonging to PetroChina International as overseas storage facilities for the LSFO contract, which is open to foreign investors for trade.

That marked the first time a Chinese futures contract would be deliverable outside of China and could boost contract liquidity and help influence pricing for shipping fuel.
Source: Reuters (Reporting by Emily Chow; editing by Jason Neely)