UK-based small-scale LNG company Avenir LNG has sold its 20,000 cbm Avenir Allegiance LNG bunkering ship to Shanghai SIPG Energy Service (SSES).
Avenir LNG has entered into a long-term joint cooperation agreement (JCA) with Shanghai SIPG Energy Service (SSES). This is a Chinese joint venture between Shanghai International Port Group (SIPG) and Shenergy which is responsible for delivering LNG bunker to CMA CGM’s container ships on behalf of SIPG.
Under the JCA, Avenir will be responsible for the global marketing of LNG bunkering services in Shanghai Port. It will also support SSES to ensure seamless LNG bunkering operations for the CMA CGM containerships and future customers.
Avenir says this is a major milestone as it expands the company’s bunkering network into the Chinese market. Therefore, it is adding another hub to its existing bunkering network in the Mediterranean, North West Europe, and Malaysia.
In support of establishing Shanghai as a leading LNG bunkering hub, Avenir sold its first newbuild Avenir Allegiance to SSES.
The Avenir Allegiance is the world’s largest liquified natural gas bunker vessel. Now, it will provide LNG to the biggest LNG bunker customer at the largest container port in the world., the company says.
The vessel sale released significant cashback to Avenir. The company will use the proceeds to enhance its working capital position and fund future growth opportunities.
Peter Mackey , CEO of Avenir LNG, said “We are thrilled to play an important role in establishing and promoting China’s first LNG bunkering hub in Shanghai. This deal marks another major achievement in Avenir’s development as we continue to expand our LNG bunkering network globally.”
LUO Wenbin from SIPG added: “SIPG is making efforts to build the LNG bunkering hub for international vessels in Shanghai Port. SIPG’s subsidiary SSES establish long-term cooperative relationship with Avenir, which will promote the LNG bunkering services for CMA CGM and other international liner customers in Shanghai port and join hands to make a positive contribution to the energy transition and carbon reduction of the shipping and logistics supply chain.”