Singapore's AEI, China's Zhongneng to Collaborate in LNG Business

Singaporean aluminium producer AEI Corporation and China’s Zhongneng International Gas June 13 entered into a framework agreement to work together in the LNG business, AEI said June 17.

The two parties plan to jointly procure at least 6mn metric tons/year of LNG from the international market and purchase LNG ISO containers to be used on the Yangtze River Basin. They also plan to incorporate a joint venture entity in Shanghai to undertake LNG trading and logistic activities. The joint venture firm shall supply LNG for power generation to Zhongneng, AEI said.

In addition, Zhongneng has agreed to AEI's participation in the investment and construction of port facilities, and the operation of LNG ISO containers projects located along the Yangtze River. AEI is also expected to participate in the establishment of structured funds for the related LNG logistics facilities and trade investment, it said.

Zhongneng is in the business of import and purchase of LNG, domestic sales and warehousing logistics and distribution, logistics facilities construction and equipment manufacturing. Zhongneng International Petrochemical, a China state-owned enterprise, holds 51% equity in Zhongneng International Gas.