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A new company named China Merchants Energy Trading (CMET) has been set up by two subsidiaries of China Merchants Group in Singapore to supply bunker fuel to the company's fleet of ships, Reuters reports.

CMET, a 70:30 joint venture between China Merchants Hoi Tung Trading and China Merchants Energy Shipping Co. (CMES), is said to have targeted an annual bunker sales figure of 2 million tonnes.

The company's managing director, YQ Tan, is cited as saying that CMET could look into converting existing chemical tankers to carry out bunker fuel deliveries. CMET could also convert Floating Production Storage Offload (FPSO) units for oil storage and blending, he added.

Tan said he expects CMET's Singapore office to have more than 10 members of staff by next year, as the company planned to expand its trading operations to include other oil products.

China Merchants Hoi Tung Trading is principally involved in trading commodities and supplying ship machinery.

CMES provides a range of energy transportation services, operating a fleet of crude oil tankers, dry bulk carriers and LNG carriers. The company is a joint venture between China Merchant Group, Chinese shipper COSCO and state oil firms Sinopec Group, Sinochem Corp, and CNOOC Group.

Singapore is the world's largest bunkering port with sales of over 45 million tonnes in 2015. There are currently 58 bunker suppliers officially licensed by the Maritime and Port Authority of Singapore (MPA).