Cosco to double oil-transport capability

Cosco to double oil-transport capability

China Ocean Shipping (Group) Co., China's biggest shipping company, said it will expand its crude oil fleet to nearly 4 million deadweight tons in three years, from 1.94 million dwt. now.

The plan is part of Cosco's developing long-term strategic partnership for cooperation with Sinopec, China's leading producer and supplier of petroleum products. A framework agreement on the cooperation was signed Friday afternoon.

Under the agreement, Cosco would provide quality crude oil transport services to Sinopec, which in return would meet the demand of Cosco's crude oil fleet for shipment, said Ma Zehua, vice president of Cosco.

The cooperation will benefit both companies and lay a solid foundation for establishing a state oil shipping fleet and safeguarding China's oil import transportation on the sea, Ma said.

Both sides agreed they would seek to expand cooperation to other fields, he added.

China, which has become a net oil importer, bought 86 million tons of crude oil on the international market last year. Experts estimated the figure might exceed 100 million tons this year.