Wepec picks China VLCC

China VLCC has secured a two-year contract to provide crude oil transportation for West Pacific Petrochemical Co (Wepec).

The two year deal with the Dalian-based refinery runs until the end of 2016 and includes an option for a third year.

Confirmation of the contract came in a disclosure by China Merchants Energy Shipping (CMES) to the Shanghai Stock Exchange.

CMES and Sinotrans & CSC teamed up to create the $1bn China VLCC joint venture last summer, prompted by China’s rising demand for oil imports.

Last week, China VLCC agreed to two-year charters for two of its tankers in deals with oil majors BP and Shell.

In a statement filed with the Shanghai bourse CMES said the fixtures were worth about CNY 360m ($56m) in total.

The identities of the VLCCs involved were not disclosed, but were believed to be the New Peace (built 2012) and the Yangtze Friendship (built 2008).

China VLCC is said to control more than 40 VLCCs according to Clarksons, including more than a dozen newbuildings due for delivery between 2015 and 2017.

source:www.tradewindsnews.com