China’s Shanghai International Energy Exchange (INE) has approved four entities as designated delivery warehouses for its upcoming low-sulphur fuel oil (LSFO) futures contract, it said in a statement late on Thursday.
The entities were listed as Sinochem-Xingzhong Oil Staging (Zhoushan) Co., Ltd., Zhejiang Ocean Oil Products Warehousing Co.,Ltd., Dading Petroleum Logistics Co.,Ltd. and Yangshan Shengang International Oil Logistics Co., Ltd.
They will have total approved storage capacity of 570,000 tonnes and active storage capacity of 320,000 tonnes. The storage fee is 3 yuan per tonne each day.
The LSFO contract, with sulphur content lower than 0.5%, will debut on June 22, with foreign investors allowed to participate.
The INE had published rules for its low sulphur fuel oil contract on Wednesday, stating that it will be traded at 10 tonnes per lot with a daily price limit of 5% and a minimum trading margin of 8%.
Source: Reuters (Reporting by Emily Chow; editing by Emelia Sithole-Matarise)