Cosco Shipping ready to set up LNG joint venture

Cosco Shipping Energy Transportation is to setting up a LNG transportation joint venture in Hong Kong and will invest in the construction for three LNG carriers. The new jv will be jointly established by the company’s wholly-owned subsidiary Shanghai Cosco Shipping LNG Investment Co., Ltd, Cosco PetroChina Shipping Co., Ltd, 51% stake-controlled by the company, and Glasford Shipping (Hong Kong), with a shareholding ratio of 60%, 21% and 19% respectively.

After establishing, the jv will register three single vessel companies in Hong Kong, which is planning to order three 174,000 c m LNG carriers at CSSC Hudong-Zhonghua Shipbuilding at a cost of $185m each vessel. The three single vessel companies will be responsible for the three LNG carriers’ management and chartering.

“The overall LNG project will enlarge the company’s LNG fleet, strengthen the company’s business connection with China’s large size oil and petroleum company, and further improve core competitiveness of its LNG transportation business,” said the Cosco Shipping Energy Transportation. The project will be implemented right after receiving the approval from cooperation parties and central government.

Cosco Shipping Energy Transportation is a specialized company engaging in shipment of energy, including oil and natural gas, operating under Cosco Shipping. The company operates the world’s largest tanker fleet.