China VLCC, a joint venture between China Merchants Energy Shipping (CMES) and Sinotrans&CSC, has signed a two-year crude shipping contract with Dalian-based West Pacific Petrochemical (Wepec), operated by PetroChina.
The contract will be extended by one year with approvals from both parties, according to a stock exchange announcement filed by CMES. The shipping rates will be determined according to market levels.
West Pacific Petrochemical is a refinery operated by PetroChina, while China VLCC is the largest very large crude carrier (VLCC) operator in China.
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.
“The signing of the contract will help stabilize the company’s cargo source and build a firmer and better relationship with clients,” China VLCC said.
The CMES announcement did not specify the crude oil volumes to be shipped and the number of ships to be chartered by Wepec. The charter rates will be determined based on market levels, the announcement mentioned.