The LNG carrier will be converted into a floating storage re-gasification unit (FSRU) and delivery is scheduled in March 2020
CSSC Shipping Hong Kong has has signed an agreement with Golar LNG subsidiary GVS Corporation, for sale and leaseback of an LNG carrier (LNGC).
The memorandum of agreement (MOA) will see CSSC purchase the LNG carrier from GVS for US$147 million and lease the vessel back to GVS at an estimated charter hire of US$159.65 million under a bareboat charter.
The vessel, which is expected to be delivered by March 2020, is a 140,000m3 LNG carrier set to be converted into a floating storage re-gasification unit (FSRU).
A statement from CSSC said the company agreed the deal to strengthen subsidiary Fortune London, primarily a leasing business, as an extension of the company’s business strategy.
FSRUs provide a cost-effective route to quickly setting up LNG import infrastructure to meet growing demand for gas-fired power generation.
By 2025, southeast Asia’s LNG demand is expected to reach 25 mta, underpinned by rising energy demand and falling domestic gas production.
Booming economies, growing populations and increasing gas-fired power requirements will more than double the demand for LNG in southeast Asia by 2025. Underpinning this demand will be Vietnam and the Philippines, which will become first-time importers of LNG as their own domestic gas production falls over the next decade.