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Sinotrans seals joint venture deals for five Arctic LNG carriers

Sinotrans seals joint venture deals for five Arctic LNG carriers
Sinotrans Shipping has entered into agreements to form joint ventures with Dynagas and China LNG Shipping (CLNG) to participate in the Arctic LNG transportation market.

Hong Kong-listed Sinotrans Shipping said it has formed five joint ventures, with each owning one 172,410 cu m ice-breaking LNG vessel for construction at South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) and DY Destiny, worth a total of $1.59bn.

The vessels will be on time-charter for the Yamal LNG project. The ships will be leased to Yamal for a term commencing from their deliveries until 31 December 2045, with extension options for two five-year periods. The newbuildings are scheduled to be delivered between 30 November 2017 to 31 March 2019.

“The entering into of the shipbuilding contract transactions and the time charter transactions signifies a milestone for the group’s participation in the growing LNG transportation market and expansion of its existing chartering business through the ownership of 25.5% of the JV companies and its strategic relationship with Dynagas and CLNG,” Sinotrans Shipping said.

The Chinese shipowner had revealed in September this year that it was in negotiations with certain parties to jointly participate in building the five Arctic LNG carriers.