China Will Build Four 308,000 DWT Ton Oil Tankers

The largest Chinese ocean shipping operator and the nation's biggest shipbuilder have signed a contract to build four VLCCs (very large crude oil carrier). China Shipping Group Company (CSGC) said on Saturday that the four 308,000-DWT ton vessels will be constructed by the China State Shipbuilding Corporation (CSSC). Terms of the deal were not revealed.

CSGC intends to have a total of 12 VLCCs in its oil tanker fleet by the year 2010, giving the firm the capability of transporting more than 100 million tons of oil annually. At this time, CSGC has three VLCC’s, with five other scheduled for delivery by 2010. Although China currently relies heavily on foreign oil tankers, with its domestic fleet carrying less than twenty percent of the country’s needs. The rapidly expanding fleet will, by 2010, increase that percentage to about fifty percent of China’s imported oil. China is already the world’s third largest oil importer.