Titan orders bunker barges

The Hong Kong-based Titan Petrochemicals Group has entered a contract for the purchase of up to ten 6,500 dwt double hulled bunker barges, at $8.67 million each, as part of its plan to expand and upgrade its bunkering business.

“The bunkering market in Asia is experiencing steady growth in demand, and supply is

not keeping pace. Titan is in a good position to capitalise on this favourable situation as

we bring in new, modern vessels and experienced personnel,” said Mr. Barry Cheung,

Titan?s Chief Executive.

The contract is for the delivery of two barges between December 2007 and January 2008, with two options each for a further four barges exercisable before November 2006 and May 2007. The barges are to be built by the Titan Quanzhou Shipyard, a shipbuilding and repair company located at the port of Quanzhou, Fujan province, China. Titan Quanzhou is 46.52% owned by Titan Oil Pte. Ltd, a privately owned Singapore company that via its subsidiary Great Logistics holds the majority of the share capital of Titan. As such, the barge contract constitutes a connected transaction and is subject to the approval of Titan?s independent shareholders.

Titan currently provides ship refuelling services in Singapore and Hong Kong, and owns three bunker barges.