State-owned China Ocean Shipping (Group) Co., commonly known as COSCO Group, said it plans to nearly double its fleet of large oil tankers to meet booming demand for crude oil imports in the country.

"We need at least 15 VLCCs (very large crude carriers) to meet our current needs," COSCO Group president Wei Jiafu said Thursday on the sidelines of a shipping summit in Shenzhen.

"Already, we have eight orders, and six have been delivered," he said.

Demand for VLCCs has increased along with global demand for crude oil. China's oil imports have surged in recent years, and hit a record 13.46 million metric tons in September, with four-fifths of the shipments brought in by foreign tankers.

Wei didn't say when he expects to take delivery of the other additional vessels, citing a congested dockyard in China and abroad.

"But 15 ships aren't enough (going forward). To meet the demand for crude oil imports in China, the country needs at least 70 VLCCs," Wei said.

According to the Xinhua news agency, industry experts believe that the expanded domestic tanker fleet will make it possible for about half of the country's imported crude oil and refined products to be brought in on China's own oil tankers after 2010.


This would help to ease the country's concerns over energy security, and the threat of a global shortage of spare tanker capacity or political frictions that could lead to a block on cargo deliveries.

Last week, another major State-owned shipper, China Shipping (Group) Co., said it signed a contract to buy four VLCCs from China State Shipbuilding Corp.

Wei also said the fluctuation in China's shipping market in 2003 and 2006 " won't be repeated in the next four to five years."

Chinese shippers, particularly container operators, have suffered from a drop in shipping rates this year, as a result of increased shipping capacity and competition.

But Wei said an expected steady growth in China's gross domestic product, which is expected to be at 10 percent in the next four to five years, will underpin solid demand for the country's shipping industry.

Last year, China's crude oil imports totaled 127 million tons, and imports of refined products were more than 30 million tons.

Xinhua said the figure for crude should rise to 130 million tons this year, and to over 200 million tons in 2010.