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Chinese leasing firms ink leasing agreement for 200 LNG-fuelled vessels

Chinese leasing firms ink leasing agreement for 200 LNG-fuelled vessels
China’s leasing firms CLNG Finance and Maifutong have entered into a sale-and-leaseback agreement with Shanghai-based LNG Power Shipping for 200 LNG-fuelled.

CLNG Finance will purchase the LNG vessels from LNG Power at approximately RMB457.2m ($71.7m), and lease back the vessels to LNG Power for a term of five years.

“The group is committed to promote the application of LNG, through engaging in the finance leasing business for LNG vehicles, vessels and equipment and investment in natural gas midstream and downstream projects to relieve the pollution problem in the PRC,” said China LNG Group, parent of CLNG Finance.

Nine Chinese shipyards, namely Dajin, An Shun, Jiangbei, Qinfeng, Dongfang, Suhang, Hehai, Hongri, Honghua, are involved in the provision of finance lease services for the LNG vessels and related shipbuilding work.

The main contractor for manufacturing the 200 LNG vessels is Honghua, which announced earlier that the deal is worth RMB760m.

The use of the LNG vessels are expected to reduce pollution emissions when they ply the Yangtze and Shanghai rivers.

Zhang Lin, deputy director of Shanghai Municipal Transport Commission, said earlier that China’s progressive drive to curb shipping emissions will see the use of 135 LNG-powered inland river vessels in Shanghai by 2017.