Cosco Shipping Energy Transportation, the tanker unit of China Cosco Shipping, has signed a COA with state-run energy giant PetroChina to transport oil from the Middle East.
Under the contract, Cosco will transport oil for PetroChina from the Persian Gulf to Made Island in Kaukphyu, Myanmar and the oil will then head to PetroChina’s Yunnan plant through the China – Myanmar oil pipeline.
PetroChina believes the COA contract will greatly save the company’s logistics cost, although the contract terms were not disclosed.
Cosco Shipping Energy has been undergoing a major fleet expansion plan recently, having ordered a total of 14 tankers at Chinese yards. In the past two months, the company has ordered seven tankers at DSIC in November, seven tankers at GSI and two tankers at DACKS in December.