Glencore forms an energy trading joint venture with Zhejiang Petroleum

Commodities trader Glencore has formed a joint venture with China's Zhejiang Petroleum to trade energy products
.

Glencore forms an energy trading joint venture with Zhejiang Petroleum

The move follows the expansion of their stake combinations by ChemChina and Switzerland's Mercuria Energy Trading Group as foreign trading companies look to gain a foothold in the world's largest energy consumer
.

Senior officials of the Zhejiang provincial government and Glencore executives attended the joint venture contract
signed on April 26, according to local media reports.

Glencore said the two parties will invest 1 billion yuan each in the joint venture Zhejiang Petroleum Trading Company, of which Zhejiang Petroleum holds 71% of the shares and Glencore holds the remaining shares
.

"Glencore has the flexibility to inject more capital and increase equity
in the future.
" An unnamed Glencore official said
.

The joint venture, which will be located in the Zhoushan Free Trade Zone in eastern Zhejiang province, will trade crude oil, petroleum products and liquefied natural gas
, officials said.
The company also plans to apply for crude oil import quotas
.

An official from Zhejiang's petroleum media department confirmed that the joint venture had been set up and would focus on crude oil trading
.
He did not disclose further details
of the deal.

Zhejiang Petroleum was established in 2017 and is jointly owned by regional utilities, state-owned
coal producer Zhejiang Energy and private refiner Zhejiang Petrochemical Co.
, Ltd.

When it launched derivatives last month, Glencore was one of
the first Western companies to trade China's new Shanghai crude futures.

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