China Shipping Dev't, Chinaoil to launch LNG shipping JV

Mar. 11, 2009 (China Knowledge) - China Shipping Development Co Ltd<600026><1138>, a subsidiary of China Shipping Group Co, announced today that it will team up with PetroChina Internationl Co Ltd (Chinaoil), an affiliate of China National Petroleum Corp (CNPC), to set up a JV for liquefied natural gas (LNG) transportation, sources reported.

The JV, with estimated registered capital of US$5 million, will be 90% owned by China Shipping Development, according to the company's statement.

The predicted scale of the JV's LNG transporting flotilla is two to three ships which cost US$160 million each. The JV will be initially responsible for LNG import from countries such as Australia and will probably to cooperate with other shipping enterprise in the near future.

Reportedly, China Ocean Shipping (Group) Co (COSCO) and China Merchants Group have set up the first LNG transporting JV in mainland China in 2004.

It is estimated that China' LNG import is likely to exceed 12 million tons in 2010.