Sinotrans Seals Deal on Arctic LNG Carriers
- Business & Finance
Hong Kong-listed Sinotrans Shipping Limited has closed the deal with Dynagas and CMES subsidiary, China LNG Shipping (Holdings) Limited (CLNG) to participate in the construction of five Arctic LNG carriers.
Sinotrans said that it has entered into a series of agreements for the formation of five joint ventures with Dynagas and CLNG, each of which is party to a shipbuilding contract and party to a time charter in respect of an Arctic LNG carrier.
Upon the JV completion, the company indirectly owns 25.5% in the deal, whereas China LNG Shipping (CLNG) holds 25.5 percent stake and Greek shipowner Dynagas the remaining 49 percent.
Sinotrans announced on 21 September 2015 that it was in talks with certain parties on participation in a possible joint venture to commission the building of five Arctic LNG carriers to engage in the LNG Arctic shipping business.
Construction of the vessels was commissioned by Yamal that ordered the ships with Daewoo Shipbuilding and Marine Engineering and DY Shipping Limited in December 2014.
In July 2015, Yamal novated the shipbuilding contracts to the JV companies, which were then wholly-owned by Dynagas. In addition, on 12 August 2015, each J entered into one time charter with Yamal, leasing the vessels to Yamal until 31 December 2045.
Yamal has the option to extend the term of the time charters for two consecutive periods of up to five years for each period.
The 172,410 cum LNG vessels are slated for delivery between 30 November 2017 and 31 March 2019.
Yamal LNG is a joint venture between NOVATEK (60 percent), TOTAL (20 percent) and China National Oil & Gas Exploration and Development Corporation (CNODC) (20 percent). The project consists of three LNG trains with a total capacity of approximately 16.5 million metric tons of LNG per annum.
World Maritime News Staff