Business

Friday November 3, 2006

China needs 70 very large crude ships



SHENZHEN: China needs at least 70 very large crude carriers (VLCCs) to be self-sufficient in transporting its own crude oil, far more than it now controls, the head of the country's top shipping group said yesterday.

“COSCO wants to expand its VLCC fleet. We're initially looking at 15 tankers but the rest is up to other shippers,” Wei Jiafu, president and CEO of China Overseas Shipping (Group) Co (COSCO) said.

A VLCC carries about two million barrels.

“China needs 70 VLCCs to carry all of its oil imports,” he said.

COSCO now operates eight VLCCs and has a further seven under construction.

Separately, state-owned China Shipping (Group) signed a US$450mil contract last weekend to build four VLCCs for delivery in 2009 and 2010, boosting its capacity to 100 million tonnes a year, state media reported.

The report said the company had three VLCCs, with five more due to be delivered in the first half next year. – Reuters

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