LNG In China – Nine Shipyards Enters Into An Agreement

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China LNG enters into strategic cooperation agreements with nine shipyards within China in relation to finance leasing business and LNG businesses and finance lease master agreement.

The Company announced on 23 September 2015 that CLNG Finance and CLNG Investment entered into the Agreement with Dajin, An Shun, Jiangbei, Qinfeng, Dongfang, Suhang, Hehai, Hongri, Honghua in relation to the provision of finance lease services for LNG vessels, the manufacturing of LNG vessels, the transformation or modification of vessels from using diesel fuel into using LNG and the construction of LNG and clean diesel refueling stations for developing the LNG businesses in the PRC.

In total the financing amounts to RMB4.8 billion (US$754.19 million).  The companies have committed to building LNG vessels for a competitive price in an efficient timetable.

China LNG along with its partners have agreed to invest in LNG bunker stations at ports along the coast where each company operates.  China LNG will assist with planning and permissions and will be the preferred partner of fuel supply to these facilities.

Highlights:

  • All the agreed companies can
    • invest for the leasing of LNG vessels at favourable rates.
    • Promote LNG as a clean energy source, and
    • Recommending China LNG to their customers.
  • The agreements are nonbinding
  • The agreement will be in effect for two to three years, with further specific agreements needed for individual projects.
  • The agreement also paves for a major expansion of China LNG’s finance business, which has previously been focused on the country’s market for LNG-fuelled heavy vehicles.

In a statement China LNG said: “The group is committed to promoting the application of LNG – through engaging in the finance leasing business for LNG vehicles, vessels and equipment and investment in natural gas midstream and downstream projects – to relieve the pollution problem in China.”

A joint deal with Maifutong International Finance Leasing to provide RMB457.2 million (US$71.79 million) towards the building of 200 LNG-fuelled vessels for LNG Power Shipping Co, which transports construction materials and waste on Shanghai’s inland waterways is another major deal.  The vessels are to be built by Hongua Offshore.

Source: HKExnews

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