Aegean Marine Petroleum Network Inc. has announced that it has signed a Memorandum of Understanding to establish a strategic alliance with
China Changjiang Bunker (Sinopec) Co. Ltd. (CCBC), a Chinese state-owned enterprise jointly owned by
Sinopec Sales Co., Ltd. and
Sinotrans & CSC.
CCBC is one of China's five state-certificated bonded bunker suppliers and among the largest bunker supply companies in China. According to Aegean, the strategic partnership, which is expected to become effective during the second quarter of 2012 upon completion of final documentation, will enable the company to meet the marine fuel needs of its customers in mainland China.
Under the terms of the agreement, CCBC will utilize its position as one of China's largest bunkering companies to provide comprehensive marine fuel services to Aegean's customers in strategic ports, including all Changjiang River ports and certain coastal ports such as Nanjing, Zhenjiang, Yangzhou, Taizhou, Changzhou, Jiangyin, Nantong, Changshu, Zhangjiagang, Taicang, Shanghai (excluding Yangshan), Ningbo, Tianjin, Qingdao (scheduled to open by the end of 2012), Dalian, and others.
Aegean will be responsible for the supply and delivery of marine fuels to CCBC's customers in Aegean's network currently covering 19 countries throughout North America, South America, Central America, Europe, Africa and the Middle East.
Dimitris Melisanidis, Head of Corporate Development at Aegean, commented, "Our strategic alliance with CCBC provides important strategic benefits for our company. First, we are extending our global reach to mainland China, enabling Aegean to establish an initial footprint in some of the world's largest ports. Second, Aegean is expanding its global scale in a prudent, cost-effective manner by partnering with one of China's largest physical suppliers of bonded bunker fuels. And third, this alliance will further strengthen Aegean's ability to meet the needs of its customers that operate on a worldwide basis. We look forward to working closely with CCBC and building a mutually beneficial relationship over the long term."
Jinghan Yao, a Member of the Board and General Manager of CCBC, stated, "We are pleased to form a strategic alliance with Aegean Marine Petroleum Network. The company's bunkering network throughout the world provides a good choice for us to offer integrated marine fuel services to customers outside the Chinese market. By combining our efforts with Aegean to deliver innovative customer solutions, we are confident our partnership will provide significant long-term value for both companies. The specific operation of the program will be defined in the cooperation agreements to be signed by the two parties in the future."
