China LNG Group signed a deal with CIMC Enric Holdings for the purchase of 275 LNG tank containers for a total consideration of 126 million Chinese yuan renminbi ($19.7 million).
Under a strategic cooperation deal between the two companies, China LNG Group agreed to purchase additional 800 to 1,000 LNG tank containers from CIMC Enric by the end of the year, China LNG Group said in a filing to the stock exchange.
In addition, the group has agreed to purchase CIMC Enric produced cryogenic equipment such as LNG refueling trucks, LNG Dewar flasks and other products.
Appart from the technology sales, CIMC Enric has agreed to provide China LNG Group with technical and emergency support during the trial operation of the LNG tank containers.
It will also invest in the construction of China LNG Group’s vacuum facilities in its logistics distribution center according to every purchase of 500 LNG tank containers, the filing reads.
China LNG Group noted that the move comes as a response to the rapid development of its LNG business, and to the government’s strategy to truck LNG supplies to regions in need during winter demand.
The company is conducting pilot projects for transporting LNG from south to north in LNG tank containers with the aim of creating a new model of LNG supply chain. The company plans to purchase a total of 5,000 to 10,000 LNG tank containers over the next five years.
The agreement with CIMC Enric follows that signed with Chart Cryogenic Engineering Systems in March for joint investment and cooperation,