Hong Kong-listed China LNG on 23 September signed agreements with nine Chinese companies to finance LNG vessel projects in China.
The nine companies are Jiangsu Dajin Heavy Industries, Jiangsu An Shun Shipbuilding, Jiangsu Jiangbei Ship Industry, Jiangsu Qinfeng Shipbuilding, Pizhou City Dongfang Ship Repairing and Building, Pizhou City Suhang Shipping, Jiangsu Hehai Shiping, Wuhu Hongri Shipping, and Honghua Marine Oil and Gas Equipment (Jiangsu).
According to the agreements, China LNG will extend financial aids for the leasing, manufacturing, and modification of LNG vessels, including conversion from using diesel to LNG, and construction of LNG and clean diesel refuelling stations.
China LNG’s wholly-owned subsidiary CLNG Finance has also signed a deal with Maifutong and LNG Power to purchase 200 LNG vessels from Shanghai-based LNG Power at the combined price of CNY457.2 million (USD71.7 million), and to lease these vessels back to LNG Power for a five-year term.
These 200 vessels, orders for which were placed at Honghua Offshore Oil & Gas in early August, comprise 100 750 dwt vessels, 50 950 dwt vessels, and 50 1,350 dwt vessels, with a total investment of CNY650 million.