Guangxi Tiansheng Port Co is likely to renew the contract with South Korea's E1 at the end of July 2011, with LPG re-export still being the focus of their cooperation, said a source with Guangxi Tiansheng.
Guangxi Tiansheng reached an agreement with E1 after it obtained permission for LPG bonded storage in August 2007. Based on this agreement, E1 rented Guangxi Tiansheng's bonded tank farm and it could unload and load cargoes at this tank farm, while Guangxi Tiansheng was mainly in charge of storage and some trading. At the beginning of the cooperation, these two companies focused mainly on spot LPG re-export and then they gradually moved over to long-term re-export, said an informed source. They have been cooperating for about four years and their contract will expire at the end of this month.
Now both parties have begun talks on cooperation in the future, C1 learned.
They have expressed hopes for further cooperation, without revealing details about how long the new contract will last.
Guangxi Tiansheng exported over 60,000mt of LPG in the first five months of 2011, which took up 13% of China’s LPG exports in the period and put the company in the fourth place among China’s largest LPG exporters, C1’s data showed, The company’s LPG re-exports added up to around 150,000mt in 2010, about 16% of China’s LPG exports in the year.
