Dubai-based shipping company Gulf Navigation Holding PJSC (GulfNav) has entered into a strategic alliance with compatriot energy trading firm Mena Energy to cooperate in leasing, acquisition and commercial management of oil tankers.

Under the agreement, GulfNav intends to acquire or order up to 12 vessels for carrying crude and petroleum products that would be time-chartered to Mena Energy. The ships are expected to be in the range of 50,000-120,000 dwt.

The strategic alliance aims to set out a platform for the parties “to have an enhanced commercial relationship and to further strengthen their existing business ties,” according to GulfNav.

The new partnership is said to be in line with GulfNav’s previously announced strategy to acquirea large shipping fleet and to expand its business. According to this strategy, the firm plans to expand its services beyond chemical carriers by including other ship types, offshore services, shipping services as well as ship building and repair.

In October 2016, GulfNav placed an order for six chemical tankers at China’s Wuchang Group in an aim to meet the increasing demand for transferring chemicals from the UAE and other Gulf countries to global markets.

The contract includes working to develop the transfer of chemicals from the Gulf countries, encouraging investment in the field of chemical industry and distribution in the Gulf region, and developing investment in the heavy marine industry infrastructure, according to GulfNav.