COSCO Shipping Energy Transportation Pens VLCC Charter Deal with Sinochem

Business & Finance

COSCO Shipping Energy Transportation (CSET) has signed a cooperation agreement on tanker transportation with Sinochem Oil, a subsidiary of Sinochem Corporation.

The deal, signed on January 11, will see  CSET charter in five very large crude carriers (VLCC) from Sinochem Shipping.

Announcing the agreement, CSET said that the move was in line with its ambition to bolster its VLCC capacity and deepen cooperation in energy business with Sinochem.

COSCO’s tanker arm has been very busy over the recent period with adding of newbuilding capacity.

In December, CSET ordered seven ships at compatriot Guangzhou Shipyard International Company Limited (GSI).

The order includes two 64,900 dwt crude oil tankers, two 109,900 dwt LR2 vessels and three 114,000 dwt crude tankers, totaling in an investment worth approximately USD 323 million (RMB 2.14 billion.).

The delivery of the Panamax tanker pair is expected in the first quarter of 2020, while the LR2/Aframax duo is to be handed over to its owner in October 2020 and 2021 respectively.

The final trio from the batch should join the company’s fleet in April and August 2020 respectively, the company informed.

Another order was placed in January when CSET booked construction of two 308,000 dwt tankers at Dalian COSCO KHI Ship Engineering Co (DACKS).

The ships are slated for delivery in August 2020 and January 2021 respectively.

World Maritime News Staff