China’s Qingdao Port International has officially formed a joint venture company with PetroChina Fuel Oil.
The joint venture company, named Qingdao PetroChina Storage Company Limited, was established on June 29, 2018, and follows a letter of agreement signed between the parties in August 2017.
The company will cover storage, stevedoring and transmission of oil products including crude oil, fuel oil, diluted asphalt and wax oil.
PetroChina Fuel Oil will hold 51% of the JV company, while Qingdao Port will hold the remaining 49%.
Qingdao Port informed that the new company’s registered capital is RMB 300 million (USD 45.1 million), of which PetroChina Fuel Oil contributed RMB 153 million and Qingdao Port contributed RMB 147 million.
The parties established the new company in an effort to further improve the oil storage and transportation facilities in Dongjiakou Port Area, to enhance the core competitiveness of the port of Qingdao in respect of transportation of oil products.
“Such cooperation will provide more convenient facilities and more smooth channels to supply raw materials for petrochemical enterprises in Shandong Province,” Qingdao Port informed.