Golar LNG signs sale-and-leaseback deal with Cosco Shipping Development

Golar LNG signs sale-and-leaseback deal with Cosco Shipping Development

Hong Kong-listed Cosco Shipping Development (CSDC), the financing arm of China Cosco Shipping, has entered into a 10-year sale and leaseback agreement with LNG carrier operator Golar LNG.

Under the agreement, CSDC will acquire 160,000 cu m LNG carrier Golar Crystal from Golar LNG for $187m and Golar LNG will charter the vessel back from CSDC for  a period of 10 years.

The upfront hire and principle hire in the contract is $75m and $62m respectively, and the variable hire has yet to be calculated.

CSDC transformed from container line China Shipping Container Lines (CSCL) into an integrated financial services platform after the merger between Cosco Group and China Shipping Group. The company said the agreement would facilitate the expansion of the group’s ship leasing business and enhance the profitability of the group.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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