China’s Qingdao Port has entered into a letter of intent with PetroChina Fuel Oil, a subsidiary of PetroChina, for the establishment of a joint venture.
The jv, to be established in the Doingjiakou port area of Qingdao Port, will be engaged in the storage, stevedoring and transmission of oil products. The two companies also plans to construct crude oil storage tanks with capacity of 600,000 cu m for the jv. Qingdao Port will invest RMB147m to take a 49% equity stake in the venture.
According to Qingdao Port, the jv will further enhance the company’s core competitiveness in oil products transportation and the collaboration will provide more convenient facilities and channels for PetroChina to supply raw material for petrochemical companies in Shandong.
Qingdao Port is the main crude oil import port for the oil refineries in Shandong, which accounts for around 70% of the total oil refinery capacity in China.