Zhoushan grants its first methanol bunkering licence to PetroChina Fuel Oil subsidiary, advancing green marine fuel adoption and port competitiveness.
Zhejiang Free Trade Zone PetroChina Fuel Oil Co. Ltd, a subsidiary of PetroChina Fuel Oil, has achieved a major milestone by becoming the first company to receive a methanol bunkering licence in the Zhoushan area of the China (Zhejiang) Pilot Free Trade Zone. The announcement was confirmed by the Information Office of the Zhoushan Municipal People’s Government on Thursday, 1 January, highlighting a significant development in China’s efforts to promote cleaner marine fuels.
The licence, officially issued on 24 December, authorises the company to provide methanol bunkering services to international vessels operating in Zhoushan. Valid for a period of three years, the approval marks the first time methanol has been formally permitted as a marine fuel option for international shipping within the region. This move reflects Zhoushan’s growing ambition to position itself as a leading hub for green and alternative marine fuels in Asia.
Following the receipt of the licence, Zhejiang Free Trade Zone PetroChina Fuel Oil has begun discussions with both shipping operators and shipbuilding companies to secure its inaugural methanol bunkering operation. These talks are aimed at establishing early partnerships and operational readiness, ensuring that the company can quickly translate regulatory approval into practical service delivery. Methanol is increasingly viewed as a viable low-emission alternative to conventional marine fuels, particularly as global shipping faces mounting pressure to decarbonise.
Established in Zhoushan in 2019, Zhejiang Free Trade Zone PetroChina Fuel Oil has rapidly emerged as a dominant force in the region’s bonded fuel oil refuelling market. Over the years, the company has built strong operational capabilities and customer relationships, enabling it to capture a significant share of marine fuel supply activities. In the previous year alone, it supplied approximately 2.4 million metric tonnes of bonded marine fuel in Zhoushan, representing a year-on-year growth of around 10%. This steady expansion underscores the company’s operational scale and its importance to Zhoushan’s maritime energy ecosystem.
Zhoushan itself has been actively enhancing its bonded marine fuel service infrastructure while simultaneously accelerating the development of greener fuel alternatives. As one of China’s most important bunkering ports, the city has leveraged policy innovation and pilot programmes to stay aligned with global maritime trends. A key step in this direction came in July 2025, when local authorities introduced the “Operational Management Guidelines for the Pilot Program on Waterborne Refuelling of Clean Fuels for International Ships” within the Zhejiang free trade zone.
These guidelines significantly broadened the scope of fuels permitted for bunkering activities. In addition to traditional marine fuels, the policy allows for the refuelling of liquefied petroleum gas (LPG), liquefied natural gas (LNG), and liquid ammonia. By formally incorporating these cleaner fuel options, Zhoushan has laid the regulatory groundwork for a diversified and future-ready marine energy market.
The issuance of the first methanol bunkering licence to PetroChina Fuel Oil’s subsidiary is therefore not an isolated event, but part of a broader, long-term strategy to support the maritime industry’s green energy transition. As international shipping companies increasingly seek ports capable of supplying alternative fuels, Zhoushan’s proactive approach is expected to enhance its competitiveness, attract next-generation vessels, and reinforce its status as a global bunkering centre.
