China J/V to Buy Six LNG Carriers

China Shipping Development and Sinopec Kantons are to spend HK$11.71 billion to buy six LNG carriers, which will be chartered to Sinopec.

The two companies have set up a joint venture China Energy Shipping Investment (CESI) which is 51 percent controlled by China Shipping and 49 percent by Sinopec Kantons, for the deal, reports the 'Hong Kong Standard'.

Both companies said the deal is to expand their logistics business. China Shipping consider that steady rental income will be generated as Sinopec will lease the carriers for the transportation of LNG to and from its Australia Pacific Project.

The delivery date of the six LNG carriers will be from April 2016 to November 2017.

Source: Hong Kong Standard