China is considering expanding its fleet of oil tankers to strengthen its ocean transport capability and further secure oil supplies.

Zhang Shouguo, an official with the Water Transport Department of the Ministry of Communications, said in Beijing Friday that the ministry and other administrations had set up a task force to discuss detailed plans for the expansion.

As the world's third largest oil consuming country, China imported about 1.4 million barrels of oil each day in 2002. Over 90 percent of China's oil imports were transported by ship, of which 90 percent was carried by foreign tankers.

Zhang said experts had suggested that China should have enough oil tankers to transport 50 percent of its oil imports.

"In that case, China would secure the safety of its oil imports, and related industries, including ship-building and steel, would also be stimulated," Zhang quoted experts as saying.

He said the plan would require an estimated investment of about US$1.8 billion.

Fan Hengshan, an official with the State Development and Reform Commission, said one option to realize the goal was to establish cooperation between China's major oil importers and shipping groups.

So far, China's biggest oil importer and shipping group, China Petrochemical Group (SinoPec) and China Ocean Shipping (Group) Company (COSCO), had expressed an interest in cooperation, sources with the Ministry of Communications said.

(Xinhua News Agency August 8, 2003)