MOL, CNOOC and COSCO get Chinese backing for three LNG carriers

Mitsui OSK Lines (MOL) has entered into a lease agreement for three new 174,000-m³ LNG carriers under construction at Hudong-Zhonghua Shipbuilding group with China’s Bank of Communications Financial Leasing Co (BOCOM Leasing).

The lease is being taken through MOL’s joint venture with China Ocean Shipping Company (COSCO)’s investment arm COSCO Shipping Investment Co, a Singapore-based trading and marketing subsidiary of China National Offshore Oil Corp (CNOOC), and CETS Investment Management Co. BOCOM Leasing is a subsidiary of Bank of Communications Co Ltd and the largest leasing company in China, and this marks MOL’s first contract with a Chinese leasing company based in Hong Kong.

MOL said the move is part of a "regional strategy" management plan to promote "deeper regional strategies by diversification of financing".

"MOL sets its sights on expanding business in emerging markets, including China. This lease agreement was achieved with a local financial institution in collaboration with a Chinese partner, in line with MOL’s regional strategy. Through these initiatives, MOL will expand its funding sources and diversify its funding methods to strengthen its competitiveness, and it aims to realise a regional strategy while increasing its presence in China and other Asian markets," a statement from MOL said.