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China Gas, Wah Kwong and CSSC (Hong Kong) Shipping set up LNG jv

Photo: AdobeStock LNG pipes leading to LNG-carrier
The Chinese energy supplier China Gas, shipping company Wah Kwong Maritime Transport and leasing company CSSC (Hong Kong) Shipping jointly set up a new company to develop LNG-related business.

China City Gas, Vantage Energy and Fortune Clean Energy, subsidiaries of the China Gas, Wah Kwong Maritime Transport and CSSC (Hong Kong) Shipping, have entered into the Joint Venture Agreement

China Gas, Wah Kwong, and CSSC (Hong Kong) Shipping have a capital contribution of 30%, 45% and 25%, respectively. 

Joint venture company plans to set up two wholly-owned special purpose vehicles for the purpose of acquiring and owning each of the two LNG vessels. 

The formation of the jv and the chartering of the LNG vessels will allow the group to secure a stable supply of LNG vessels for LNG business development and diversified business models. The group can use the LNG vessels leased for a long term at a pre-determined rate with certainty despite price fluctuation in the vessel chartering market, said China Gas.