China: CSDC Invests Big in Its Own LNG Fleet

CSDC Invests Big in Its Own LNG Fleet

Driven by a desire to expand its LNG transportation business, China Shipping Development Co (CSDC) announced a USD 1.2 billion investment intended for construction of six LNG carriers at Hudong Zhonghua Shipbuilding Group, Seatrade-global writes.

The announcement comes after CSDC had announced earlier this week that it intends to engage in new LNG transportation projects, one of such projects being establishment of  its own LNG fleet.

The investment is scheduled to be completed by June via a venture owned by Sinopec Group, CSDC and Mitsui OSK Lines (MOL) that will be in charge of  the tanker purchases.

The carriers will have a capacity to take on a load of 174,000 cubic meters of natural gas.

According to CSDC, the vessels, 205 mln each, will herald a 20-year shipping contract for the company, thus a stable profit,  LNG market being a rising industry branch ever more recognized by industry players.

What is more, there is a possibility for construction of additional four vessels as CSDC  is in negotiations with two other Chinese shipyards on the project.

World Maritime News, March 21, 2013