Singapore's Yangzijiang Forms LNG JV
Singapore-listed Yangzijiang Shipbuilding has entered into an agreement to establish an LNG supply chain joint venture with two Chinese companies, it said on January 14 in a stock exchange filing.
Yangzijiang Terminals China Holding (YTCH), a unit of Yangzijiang Shipbuilding, signed an agreement with Wuxi China Resources Gas Co. (WCRG) and Jiangyin Xinyangchuan Enterprise Management Centre to establish a joint venture called Run Yuan Energy. The joint venture has yuan 20mn ($3mn) in capital.
Jiangsu Run Yuan Energy will build LNG storage facilities, and get involved in gas trading and other areas of the LNG supply chain, Yangzijiang Shipbuilding said. YTCH, WCRG and Xinyangchuan will own 30%, 51% and 19% equity interest in the proposed joint venture respectively.
WCRG, a unit of Chinese state-run China Resources, is involved in downstream city gas distribution business including piped natural gas distribution and the operation of natural gas filling stations. Xinyangchuan mainly invests in companies operating in industries such as energy, manufacturing and property development.
Yangzijiang Shipbuilding said that the joint venture was in its long-term interest, as it would offer an initial exposure to a wider range of LNG-related business.