BEIJING: China VLCC has sealed two year crude shipping contract with Dalian-based West Pacific Petrochemical. The contract will be extended by one year with approvals from both parties. The shipping rates will be determined according to market levels.
China VLCC was established by CMES and Sinotrans & CSC Group in September 2014 to serve China’s rising demand for oil imports.
The contract does not specify crude volumes to be shipped and the number of vessels to be chartered.
West Pacific Petrochemical is a refinery operated by PetroChina, while China VLCC is the largest very large crude carrier (VLCC) operator in China.
“The signing of the contract will help stabilise the company’s cargo source and build a firmer and better relationship with clients,” China VLCC said.
China VLCC’s fleet has grown to 31 VLCCs with the delivery of two new vessels – New Prosperity and New Achievement – and the acquisition of secondhand, 2008-built New Enterprise. New Enterprise was previously owned by Sinotrans Shipping and known as Yangtze Friendship.
Two other VLCCs owned by China VLCC have been chartered out to BP and Shell on a two-year term with aggregate hires totalling CNY360 million (USD60 million).
