Recently, Sinochem Oil successfully completed the purchase and delivery of 3,000 EU Allowances (EUAs) to China Merchants Energy Shipping for compliance under its EU shipping routes through its subsidiary in the Netherlands. This marks Sinochem Oil’s first successful EUA trade and delivery via its EU carbon trading account. Sinochem Oil has actively implemented the strategic cooperation agreement between Sinochem Holdings and China Merchants Group, identifying new growth opportunities across the industrial chain.

Seizing market opportunities, Sinochem Oil, led by its Netherlands-based subsidiary, applied for an EU EUA trading account and received approval by the end of 2024. The company rapidly established a domestic and international carbon trading team, integrating spot trading, delivery, and futures hedging operations. Leveraging its own EUA account, Sinochem Oil not only meets its internal compliance obligations for maritime emissions but has also built strong partnerships with central SOEs such as China Merchants Group and COSCO Shipping, as well as with other stakeholders in shipping, logistics, oil and gas industries, and market participants including market makers, brokers, and exchanges. In March 2025, responding to a drop in EU carbon prices, Sinochem Oil strategically procured and hedged EUAs to fulfill the 2024 shipping compliance needs of affiliated companies and its EUA sales to China Merchants Energy Shipping, reducing average purchase cost per EUA by about €3.

This successful EUA delivery demonstrates Sinochem Oil’s growing expertise in carbon asset management. With dedicated EUA trading teams based in both Beijing and the Netherlands, Sinochem Oil offers a 24/7 global response to internal procurement needs within the group. Based on the extensive experience in carbon allowances procurement, delivery, and compliance, comprehensive hedging services, and strong financial backing, Sinochem Oil is well-positioned to provide flexible, customized, and secure carbon trading and asset management services to entities within the Sinochem group and partners across the entire value chain.