Chinese company Hengtong Logistics has entered into a framework agreement with CIMC Raffles for the development of medium-small scale LNG carriers and LNG bunkering vessels.
Under the agreement, Hengtong Logistics will choose CIMC Raffles as preferred EPC contractor for the newbuild LNG carriers as the company looks to expand into the LNG shipping and LNG bunkering sector.
Additionally, Hengtong announced a plan of issuing convertible bonds to raise RMB300m ($43.6m) for the construction of one 7,500 cu m LNG bunkering vessel.
CIMC has been making effort to expand into the LNG vessel construction in the past few years. The yard currently has one 24,000 cu m LNG FSRU design that has received AIP approval from ABS.
Shandong-based Hengtong Logistics currently operates in the inland LNG and LPG sales and transport business through a joint venture with Sinopec. The company expects the new project will diversify its business mode and increase its competitiveness in the LNG sector.