China Shipping, Sinopec Kantons in LNG Carrier Deal

China Shipping Development and Sinopec Kantons are to spend HK$11.71 billion ($1.51 billion) to buy six LNG carriers, which will be chartered to Sinopec.

Sinopec will lease the carriers for the transportation of LNG to and from its Australia Pacific LNG Project, Honk Kong’s English daily The Standard reported.

The two companies have set up a joint venture China Energy Shipping Investment (CESI), where China Shipping will have 51 percent share and the remaining will be held by Sinopec Kantons, the daily said.

CESI will fund 80 percent of the deal while Mitsui OSK Lines will make up the rest, the Standard said.

The delivery date of the six LNG carriers will be from April 2016 to November 2017.