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Total, Zhejiang Energy team up to create marine fuels company

Total SA signed an agreement with Chinese state-owned Zhejiang Provincial Energy Group Company Ltd. to create a marine fuels company in Zhoushan, China.

The company will supply and deliver marine fuels in the Zhoushan region, which covers the Ningbo and Shanghai ports, according to an Oct. 21 news release from France's Total. The region is considered the busiest shipping hub in the world based on cargo tonnage.

Under the deal, Total China Investment will own a 49% stake in the joint venture, while Zhejiang Zheneng Petroleum New Energy will have a 51% stake.

The joint venture will provide low-sulfur fuels compliant with IMO regulation and will help in China's transition to a sustainable shipping industry, Senior Vice President for Lubricants & Specialties Philippe Charleux said in the statement.

The agreement was preceded by a memorandum of understanding in April, which aimed to explore opportunities in the supply and distribution of energy in China.