With storage options for cheap crude filling up fast both on land and across a record number of tankers, one Chinese manufacturer reckons it has a solution at hand.
Low profile Chinese company Submarinergy has announced that it is ready to deliver the first batch of 5,000 ton crude crude floating storage units (CFSU) this month. The company claims each CFSU can store 35,000 barrels of oil and the construction can be completed in a few weeks. The units have a design life of 50 years in sea water, the company claims.
When contacted by Splash, Chen Shuo, an official at the company said the CFSUs are built in the company’s own yard in Jiaxing, Shanghai and the first batch of products will be delivered to a top oil trader this month.
Chen expects more orders for the units in the future as demand for offshore oil storage rises and the company is planning a much larger capacity 40,000 ton CFSU.
“The CFSU by Submarinergy will provide oil companies and traders opportunity that helps them take advantage of the current negative price of oil and a better storage option,” the company said in a release.
The company is also offering five-year leasing and purchase contracts to its clients.