Chinese tanker giant Cosco Shipping Energy Transportation (CSET) has unveiled plans to launch a VLCC pool and build dual-fuelled VLCCs, according to local media outlets.
In its annual meeting with clients, the tanker arm of state conglomerate China Cosco Shipping reportedly announced it had established a VLCC department as an initial step to launch a VLCC pool.
The project fits the company's aim to expand shipping capacity, enhance profitability and have a greater impact on the shipping industry.
Shanghai- and Hong Kong-listed CSET has been streamlining its business and shipmanagement operations since earlier this year in preparation for future pool management, while regular customer ZhenHua Oil — a state-linked energy firm — has agreed to participate in the pool.
“We need to study and prepare with foresights when facing market volatilities. This would be better than to simply react to the volatilities,“ CSET executive director Liu Hanbo said.
Further details were not immediately available. Attempts to reach CSET spokesmen were not immediately successful.
Separately, CSET and Dalian Shipbuilding Industry Co (DSIC) signed a memorandum of understanding during the meeting to develop dual-fuelled VLCCs that mainly run on LNG.
Aside from complying with the IMO 2020 rules, the vessels will meet the Tier III criteria of Energy Efficiency Design Index and reduce sulphur emissions by 95% when compared with conventional VLCCs, according to DSIC.
TradeWinds earlier reported that Shell could be supplying LNG as bunkers to the CSET vessels.
The energy major, one of the world’s largest LNG suppliers, has been pushing shipyards to reduce the newbuilding costs of dual-fuelled VLCCs.
Owners are asked to pay at least $20m more for the vessels capable of consuming both LNG and oil-based fuels. Shell has wanted shipyards to lower the premium to below $10m, according to brokers.
CSET is the world’s second-largest VLCC owner, with 43 ships in operation and six on order, Clarksons data shows.
