Sinopec Group announced that its subsidiary Kantons Investment had entered into a joint venture agreement with CS LNG, a wholly-owned subsidiary of China Shipping Development, establishing CESI. CESI is owned 51% by CS LNG and 49% by Kantons Investment.
Under the terms of the joint venture agreement, CS LNG and Kantons Investment agreed to jointly invest in six LNG vessels , which are intended to be earmarked by way of long-term charters for the Group’s Australia Pacific LNG Project.
The construction will be financed on a pro rata basis by way of equity investments, shareholders’ loans, bank financing or otherwise, and, through the Borrowers (which are investment holding companies each owned 80% by CESI and 20% by MOL and formed specifically for the sole purpose of undertaking the Projects).
The USD $1.5 billion new build order is placed with Hudong-Zhonghua and China Shipbuilding.
World Maritime News Staff, April 29, 2013; Image: Prisco