Shipping Firms to Create Venture to Ship in Oil Imports
Two of the largest shipping firms in China are planning to create a US$ 1.1 billion crude oil tanker joint venture in hopes to further strengthen the country’s’ fleet of tankers as the second largest oil consumer in the world is looking for away to control its oil imports better.
China Merchants Energy Shipping Co. along with Sinotrans & CSC Holdings will create a very large crude carrier joint venture with the former shelling out US$556 million of assets which will include nine very large crude carriers to gain a 51 percent stake and the latter will be doling out US$544 million cash. Oil consumption in China is now at the highest level in 17 months by June, even with the government announcement of their plans in investing billions to expand the oil and gas tanker fleet.
The joint venture is expected to be finalized by September as both companies are planning to either purchase more second hand vessels or buy brand new ships once established. Both companies are aiming to create one of the world leading tanker fleet in terms of scale by which both parties share of transporting China oil imports will increase along with its international market competitiveness.