Total and Chinese state-owned Zhejiang Energy Group have entered into an agreement to create a joint venture to tap into the growing low sulphur marine fuel market.
The agreement follows an MOU signed by the two parties in April to explore opportunities in the supply and distribution of energy in China.
Total China Investment will hold a 49% share in the joint venture while Zhejiang Zheneng Petroleum New Energy will hold the remaining share.
Zhoushan region covers both Ningbo and Shanghai ports, one of the busiest shipping hubs in the world.
“This new partnership is fully aligned with our strategy to support and supply our shipping customers wherever they go. Providing them with low sulphur fuels fully compliant with IMO regulation in China will further contribute to the transition towards a sustainable shipping industry,” said Philippe Charleux, senior vice-president lubricants & specialties of Total.