China’s second largest owner
will contribute the ships to a state-sponsored venture which will also include Cosco
and China Merchants Energy Shipping, according to China Shipping president Xu Lirong.
He says his company will initially order 10 VLs with
10 more to follow if supported by market conditions.
"This is a strategy
promoted by the country," Xu told Reuters.
"The aim is to secure
good supply, stabilize costs, form long-term cooperation and create a win-win
situation.
“The VLCC pool is a very
mature idea in the international market."
Confirmation of the plan
comes only a few days after Cosco unit Dosco said it could order 10 VLCC
newbuildings.
As TradeWinds has reported that
potential contract, which Cosco says remains at the ideas stage, led to some acceptance
in the market that a much touted giant Chinese VLCC order was moving closer to
reality.
Rumours of Beijing supporting
an order for up to 80 VLCCs have been doing the rounds for a couple of years.
Last month national media
reported a project for up to 50 ships, with 20 from Cosco and 10 from some
other partners, was in the pipeline.
Maersk-backed Nova Tankers
presently has just short of 40 ships in operation.
China has a stated strategy
to have 50% of its oil transported on ships owned by Chinese companies by the
close of 2015.
