Hong Kong-based investment holding company China LNG Group Limited (CLNG) has entered into the Letter of Intent with coastal shipping logistics company Chu Kong Shipping to cooperate in relation to Liquefied Natural Gas (LNG) refueling and bunkering infrastructure development in the Pearl River Delta region.
Specifically, the Letter of Intent covers:
- Chu Kong Shipping agrees to provide suitable locations in its passenger and cargo terminals situated at the Pearl River Delta for the construction of LNG refueling docks, LNG refueling stations and LNG storages for LNG passenger and cargo vessels and vehicles;
- CLNG agrees to invest and provide technical support in cooperation with one or several mega state-owned enterprise(s) in relation to the transformation of passenger and cargo vessels and vehicles from using oil to LNG and the purchase of LNG cargo vehicles;
- CLNG agrees to provide financing services to Chu Kong Shipping for the transformation of passenger and cargo vessels and vehicles from using oil to LNG and the purchase of LNG cargo vehicles; and
- Both parties agree to accelerate the development of the LNG businesses and inland river shipping and construction at Xijiang (西江) and Beijiang (北江) to become a prosperous shipping route along the Pearl River Delta.
Accordingly, the Company has entered into the Letter of Intent with Chu Kong Shipping in order to jointly promote the application of LNG in Hong Kong, Macau, Guangzhou, Pearl River Delta, Xijiang and Beijiang, foster the transformation of passenger and cargo vessels and vehicles to use LNG in these areas and foster the construction of LNG refueling stations on land, onshore LNG refueling stations, mobile water LNG refueling stations and centralised LNG storage centres on land in these areas.
Chu Kong Shipping is mainly engaged in shipping logistics, high-speed waterway passenger transportation and relevant supplementary services in Hong Kong, Pearl River Delta and coastal regions.
China LNG Group Limited is principally engaged in the development of LNG businesses. It is committed to promote the application of LNG, through engaging in finance leasing business for LNG vehicles, vessels and industrial equipment and investment in natural gas midstream and downstream projects to relieve the pollution problem in the PRC. This statement of purpose aligns with the green energy strategy encouraged by the PRC government.
Detailed terms and conditions for the Cooperation will be subject to further negotiation between each other and definitive agreements have yet to be signed by the parties.
(Source: China LNG Group Limited)