COSCO SHIPPING Energy and China Merchants Energy Transportation are increasing their investments in China LNG Transportation (Holdings) Co., Ltd. (CLNG) to jointly build two of the world's largest LNG carriers, each with a capacity of 271,000 cubic meters, according to China Shipping Network.
These vessels will be leased to QatarEnergy for 25+5 years. CLNG has established two wholly-owned subsidiaries in Hong Kong to oversee the construction and operation of these vessels.
The project has a total investment of approximately $730 million, with the companies contributing no more than $220 million in capital increases. Both companies view this investment as aligned with their strategic focus on developing clean energy transportation businesses and the objectives of China's 14th Five-Year Plan.
The project is expected to generate stable long-term revenue and enhance the companies' competitiveness in the LNG sector. QatarEnergy has ordered a total of 24 of these giant LNG carriers from Hudong-Zhonghua, marking a significant milestone for Chinese shipbuilding in the development of advanced, high-capacity LNG vessels.
These vessels are designed to be more efficient and environmentally friendly than previous generations, with improved fuel efficiency and reduced emissions.