Narrative
Full Description
Project narrative
On July 15, 2011, Aquarius LNG Shipping Limited and Gemini LNG Shipping Limited — two special purpose vehicles that are jointly owned by China Shipping Development Company (30% ownership stake) and Mitsui OSK Lines (70% ownership stake) — signed a $540 million debt financing package with a group of Chinese and non-Chinese banks for the acquisition of two liquid natural gas tankers. On July 15, 2011, Cosco Shipping Energy Transportation Co Ltd (formerly China Shipping Group) became a guarantor for the lease between Aquarius LNG and PNG LNG's ship building contract as well as the guarantor for Gemini LNG and PNG LNG's ship building contract. Aquarius LNG Shipping Limited and Gemini LNG Shipping Limited signed a $314.1 million syndicated loan with ICBC Asia, Mizuho Financial Group, and Sumitomo Mitsui Banking Corporation. ICBC Asia contributed $216.04 million to the syndicate (captured via Record ID#61189). Aquarius LNG Shipping Limited and Gemini LNG Shipping Limited also signed a $117.9 million buyer’s credit loan agreement with China Eximbank (captured via Record ID#61188). Both loans have a duration of 15 years and mature on July 15, 2026. The purpose of this project was to purchase two 172,000 cbm LNG tankers in order to transport natural gas from the China Eximbank- and China Development Bank-financed PNG Liquefied Natural Gas (LNG) Project (as captured via Record ID#39326 and ID#61187). Aquarius LNG Shipping Limited built a ship named Papua, which was delivered on February 22, 2015. Gemini LNG Shipping Limited built a ship named Kumul, which was delivered on April 29, 2016. The ships are sister ships with 172,000 cubic meters (cbm) of LNG storage capacity. Mitsui O.S.K.Lines agreed to operate the ships on behalf of PNG LNG. Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. (Hudong), a subsidiary of China State Shipbuilding Corporation, was contracted to build the ships.
Staff comments
1. In 2011, Aquarius LNG and Gemini LNG each entered a ship building contract for one LNG vessel which was then to be leased for 20 years to charterer PNG LNG. On July 15, 2011, Cosco Shipping Energy Transportation Co Ltd (formerly China Shipping Group) became a guarantor for the lease between Aquarius LNG and PNG LNG's ship building contract as well as the guarantor for Gemini LNG and PNG LNG's ship building contract. 2. China Shipping Group (now Cosco Shipping Energy Transport) and Sinopec have ownership stakes in East China LNG Shipping Investment Co Ltd. (中國東方液化天然氣運輸投資有限公司), which owns 30% equity interests in Aquarius LNG and Gemini LNG (as captured via Record ID#69065 and #69066).