Chinese private petrochemical group Zhejiang Rongsheng Holding has entered into a framework of agreement with China Shipbuilding Group to build a VLCC fleet.
Under the agreement, Rongsheng will set up a joint venture with CSSC Shipping and order VLCCs with China Shipbuilding Group. The ships will be used for oil transportation from the Middle East to Zhoushan to support the development of Rongsheng’s new petrochemical plant.
While the details of the newbuilding order have not been disclosed, local shipbroking sources tell Splash that the first batch of the order will probably see 10 VLCCs contracted and the whole project could eventually total 30 ships. The ships will be most likely built at Waigaoqiao Shipbuilding, Dalian Shipbuilding Industry and Guangzhou Shipyard International.
VesselsValue data shows a newbuild 300,000 dwt VLCC is currently valued at around $86m-$88m.
Hangzhou-headquartered Rongsheng Holding is currently developing a refinery project at Zhoushan with an estimated annual capacity of 40m tons.