China Merchants Energy Shipping Co. to Buy Five LNG Vessels for Yamal LNG Project

China Merchants Energy Shipping Co. on Tuesday announced decision to invest in its joint venture China LNG Shipping (Holdings) Ltd (CLNG) to buy another five Arctic LNG transport vessels for its Yamal LNG shipping project.

Greece based Dynagas and Sinotrans Shipping Ltd will partner CLNG. Dynagas, CLNG and Sinotrans Shipping Limited intend to hold 49 percent, 25.5 percent, 25.5 percent stake respectively in the joint venture.

CLNG along with Teekay LNG Partners L.P. has already signed shipbuilding contracts for six internationally-flagged icebreaker LNG carriers for the Yamal LNG Project. The joint venture between Teekay LNG and China LNG will build six 172,000 cubic meter ARC7 LNG carrier newbuildings to be constructed by Daewoo Shipbuilding & Marine Engineering Co., Ltd., of South Korea, for a total fully built-up cost of approximately $2.1 billion. 

China LNG Shipping (Holdings) Co., Ltd., set up in Hong Kong, is a joint venture company at 50/50 interest between Dalian Ocean Shipping Company and China Merchants Group, for the purpose of planning, coordinating and arranging all the investments and management works related to the LNG transportation projects in China.