Chinese private shipbuilding group China Ocean Industry is looking to move into the LNG sector as it looks to expand its shipbuilding business.
The company has entered into a MOU with PetroChina Kunlun Gas to set up a joint venture which will be focused on the development of LNG for vehicles and ships in Jiangxi province.
The MOU includes the construction plan of an LNG tank storage site and related facilities at the shipyard operated by Jiangzhou Union Shipbuilding, including an inland river vessel bunkering station and expressway LNG fuelling station.
The MOU has an effective period of two years.
Earlier this month, China Ocean Industry failed to sell its stake in Nantong Huakai Heavy Industry as a court in Jiangsu ruled to liquidate the subsidiary yard.
In May, China Ocean Industry was forced to transfer its entire 24% equity interest in Nantong Xiangyu Ocean Equipment to creditors due to debt issues. It also transferred the management of another subsidiary yard Jiangzhou Union Shipbuilding to Yangzijiang Shipbuilding through a joint venture agreement signed last year.