China has awarded a license to oil major Shell to independently trade oil products in China's domestic wholesale oil market, a sign that Beijing is keen to attract more international participation in its oil sector.
The license will enable Shell China's Zhejiang branch to carry out purchases and sales of oil products for its customers in the Chinese market, the company said.
"After obtaining the wholesale license for oil products, we will be able to provide better trading services to our customers," said Jacek Dziembaj, global head of Shell's trading and supply business department.
Kang Wu, head of Asia analytics at S&P Global Platts Analytics, said: "The wholesale business of refined products has long been dominated by Chinese national oil companies and is typically reserved for Chinese companies.
The latest license to a wholly-owned foreign company is unique and set to increase the competitiveness of the wholesale market in China."
Shell currently has more than 1,300 retail stations in China through joint ventures and sole proprietorships