Chinese energy industry player Zhejiang Energy has entered into cooperation agreement with global integrated energy producer and provider Total to set up a joint venture for developing low sulphur marine fuel market.

Zhejiang Zheneng Petroleum New Energy, owned by Zhejiang Energy, will hold a 51% share while Total China Investment will hold the remaining 49% share in the jv. The new company will be dedicated to the supply and delivery of marine fuels in the region of Zhoushan, which covers both Ningbo and Shanghai ports.

“This new partnership is fully aligned with our strategy to support and supply our shipping customers wherever they go. Providing them with low sulphur fuels fully compliant with IMO regulation in China will further contribute to the transition towards a sustainable shipping industry,” said Philippe Charleux, senior vice president lubricants & specialties of Total.

Earlier this year, the two companies signed Memorandum of Understanding to explore opportunities in the supply and distribution of energy in China.

Zhejiang Zheneng Petroleum New Energy, established in 2017, is engaged in the development of upstream and downstream industry chain of oil. The company is constructing the warehouse facility which is expected to be the largest single oil storage and transportation base in China.