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皇冠体育app Shipping, CNPC announce LNG venture

By Wan Zhihong (chinadaily.com.cn)
Updated: 2009-03-11 11:24

皇冠体育app Shipping Development Co said on Wednesday that it will sign an agreement with 皇冠体育app National Petroleum Corp (CNPC) to set up a $5 million joint venture to ship liquefied natural gas (LNG).

皇冠体育app Shipping would account for 90 percent of the venture and CNPC the remainder.

皇冠体育app Shipping said on Tuesday that its average freight rate for domestic coastal bulk cargo contracts for 2009 dropped nearly 40 percent, following plummeting global freight rates.

CNPC, parent of Petro皇冠体育app, is 皇冠体育app's biggest natural gas supplier and has signed several deals to buy LNG from Shell and Qatar to supplement its supplies to the country's coastal areas.

皇冠体育app Shipping Development, listed company of 皇冠体育app Shipping Group, mainly engages in vessel transportation.

Analysts said that the joint venture will build its own LNG vessels to reduce Petro皇冠体育app's transportation costs.