China LNG Signs Nine Agreements to Finance Construction of LNG Powered Vessels

China LNG on Wednesday signed agreements with nine Chinese firms to finance construction of LNG powered vessels.

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).

As per to the agreements, China LNG will extend finance for manufacturing of LNG vessels, modification of vessels from using diesel fuel into using LNG and construction of LNG and clean diesel refueling stations for developing the LNG businesses in China.

China LNG stated that to cooperate with the green energy strategy encouraged by the Chinese government, the company commenced to operate the finance leasing business of the LNG vehicles, vessels and equipment in February 2015. The company added that is committed to promote 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.

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 ($71.7 million), and to lease these vessels back to LNG Power for a five-year term.