A shareholders’ agreement has been signed by Total with Zhejiang Energy Group (ZEG) that is owned by Chinese state. This is to make a joint venture company that will supply and deliver marine fuels in the region of Zhoushan, China.
A Memorandum of Understanding is followed by the agreement which was signed on the lines of the IPEC Conference in Zhoushan. This MoU was signed by Total and ZEG in April this year in order to find out opportunities for the supply and distribution of energy in China.
49% of the shares in the new company will be held by Total China Investment while the remaining will be held by Zhejiang Zheneng Petroleum New Energy (ZZPNE).
Ningbo and Shanghai ports are both covered by the Zhoushan region. In terms of cargo tonnage, these are the busiest shipping hubs in the world.
The combination of the historical anchoring of ZEG in the energy business and the expertise of Total in the trading and marketing of international bunkers, the new company will aim to contribute in the development of a fast growing market.
This new partnership is fully aligned with our strategy to support and supply our shipping customers wherever they go.” declared Philippe Charleux, Senior Vice-President Lubricants & Specialties of Total. “Providing them with low sulphur fuels fully compliant with IMO regulation in China will further contribute to the transition towards a sustainable shipping industry.”
The development of Total’s business, that started for 40 years ago in China will continue with the creation on the new company.