Total has signed a deal with Chinese state-owned Zhejiang Energy Group (ZEG) to create a joint venture company to supply and delivery marine fuels in the Chinese region of Zhoushan.
Total China Investment (TCI) will hold a 49 per cent share in the new joint venture company, and Zhejiang Zheneng Petroleum New Energy (ZZPNE) will hold the remaining stake.
The Zhoushan region covers the Ningbo and Shanghai ports, representing the busiest shipping hub in the world in terms of cargo tonnage.
The agreement, signed on the sidelines of the IPEC conference in Zhoushan, follows a Memorandum of Understanding concluded by Total and ZEG in April 2019 to explore opportunities in the supply and distribution of energy in China.
The new venture says that by combining ZEG’s historical anchoring in the energy business in the region and Total’s longstanding expertise in the trading and marketing of international bunkers, it aims to actively contribute to the development of a fast growing market.
“This new partnership is fully aligned with our strategy to support and supply our shipping customers wherever they go,” said Philippe Charleux, senior vice-president Lubricants & Specialties of Total.
“Providing them with low sulphur fuels fully compliant with IMO regulation in China will further contribute to the transition towards a sustainable shipping industry.”