Sinotrans in talks to build five Arctic LNG carriers

One of China’s largest shipping companies, Sinotrans Shipping informed it is in negotiations to take part in a joint venture to commission the building of five Arctic LNG carriers.

The company said in a statement on Monday it is in talks with “certain parties in relation to participation in a possible joint venture to commission the building of five Arctic LNG carriers to engage in the LNG Arctic shipping business.”

Sinotrans Shipping said it expects to take 25.5 percent of the shares in the joint venture without revealing any further information.

The LNG vessels in question will be probably used to transport the chilled gas from Novatek-operated  Yamal LNG project in the Arctic scheduled to start production in 2017.

“Parties are still at the stage of negotiations and the company has not entered into any legally binding agreement in respect of such proposed JV arrangement,” the company added.

LNG World News Staff; Image: Sinotrans Shipping