Sinopec announced that on 19 December 2011, the Company’s wholly-owned subsidiary, Kantons Investment, entered into the JV Agreement with CS LNG, a wholly-owned subsidiary of China Shipping Development.
The parties have agreed to form the JV in Hong Kong in connection with the expected transportation of approximately 4.30 million tonnes of LNG per annum under APLNG commencing on 2015 (and in 2015, expected cargoes will be delivered at a pro rata rate of 2.5 million tonnes) and for carrying out LNG vessels’ investments, transportation management, and sharing profit from the transportation link in the LNG business chain. The JV to be invested and established by the parties will further cooperate with an Independent Third Party possessing wide experience in LNG vessel management, and jointly invest and manage LNG vessels.
Pursuant to the terms of the JV Agreement, the initial registered capital of the JV will be US$5,000,000. The Group will contribute an aggregate amount up to US$2,450,000 in cash for 49% equity interest in the JV and CS LNG will contribute an aggregate amount up to US$2,550,000 in cash for 51% of the equity interest in the JV. Upon establishment, the JV will become a non-wholly owned subsidiary of CS LNG.
Under the JV Agreement, CS LNG and Kantons Investment have agreed and will possibly make further investment into the JV on a pro rata basis by way of equity investments, shareholders’ loans, bank financing or otherwise, in order to participate in the investment and to build around five LNG vessels for transporting of LNG under APLNG.
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LNG World News Staff, December 20, 2011; Image: APLNG