China Merchants Energy gets nod for six tankers

The National Development and Reform Commission permitted the leading Chinese tanker operator, China Merchants Energy Shipping Co., Ltd. (CMES) to buy six oil tankers via overseas investment. In April, CMES signed an agreement in Shenzhen with Dalian Shipbuilding to build two 300,00 DWT VLCCs and two 110,000 DWT tankers for $343 million. The newbuildings will be delivered in 2009 and 2010.

In June, the company signed another agreement in Beijing with China Shipbuilding & Offshore International Co., Ltd., and Dalian Shipbuilding Industry to purchase two 300,000- deadweight tonnage VLCCs, which will be delivered in December 2010 and March 2011.

Established on December 31, 2004, CMES mainly offers crude oil shipping services to China, Japan, the US, South Korea, and Southeast Asian countries. With its six oil tankers and five LNG carriers on order, the company will double its shipping capacity by 2010.