China Shipping Venture to Order Six LNG tankers

China Shipping Development Co.’s venture will order six liquefied natural gas tankers worth about $1.2 billion by June to tap the nation’s rising demand for cleaner fuel, Chairman Li Shaode was quoted by Bloomberg as saying.

“We will expand LNG transportation business to make it become a new profit growth driver as soon as possible,” Li told reporters in Hong Kong, Bloomberg reported. “The deal means a 20-year shipping contract for us, which will bring us stable earnings.”

The vessel purchase will be made by a venture owned by China Petrochemical Corp., China Shipping and Mitsui O.S.K Lines Ltd. and each ship will have a capacity to carry 174,000 cubic meters of natural gas, Li said.

Hudong Zhonghua Shipbuilding Group Co., the only Chinese shipyard that has built LNG tankers, will make the six vessels, Wang said. China Shipping is also in talks with two Chinese shipyards to order an additional four, which may be announced as early as this year, Bloomberg quoted him as saying.