French energy major Total has signed a shareholders’ agreement with Chinese state-owned Zhejiang Energy Group (ZEG) to establish a joint venture company dedicated to the supply and delivery of marine fuels in the region of Zhoushan, China.
The agreement, signed last week on the sidelines of the IPEC conference in Zhoushan, follows a memorandum of understanding concluded by Total and ZEG in April 2019 to explore opportunities in the supply and distribution of energy in China.
Specifically, Total China Investment (TCI) will hold a 49% share in the new company while Zhejiang Zheneng Petroleum New Energy (ZZPNE) will own the remaining majority share.
Zhoushan region covers both Ningbo and Shanghai ports, the busiest shipping hub in the world in terms of cargo tonnage.
By combining both companies’ expertise, the new joint venture aims to “actively contribute to the development of this fast-growing market.”
“This new partnership is fully aligned with our strategy to support and supply our shipping customers wherever they go,” Philippe Charleux, Senior Vice-President Lubricants & Specialties of Total, commented.
“Providing them with low sulphur fuels fully compliant with IMO regulation in China will further contribute to the transition towards a sustainable shipping industry,” Charleux added.