CESM's LNG vessels will initially load LNG from the APLNG project in Gladstone, Queensland, Australia and will discharge the LNG into any one of five (5) LNG terminals being built in China by Sinopec.
To deliver strategic, clean energy into China, Sinopec has entered into several agreements that involves the whole LNG supply chain. It has a 25% stake in APLNG, a 39% stake in CESM and its LNG vessels and a 100% ownership and operator-ship of its new receiving terminals. Sinopec needed to be involved in shipping to ensure it could purchase its LNG on a ‘free-on-board’ (FOB) basis, (purchasing the LNG in Australia and controlling the ships and the schedules to its five (5) destination ports).
Sinopec has a 20-year term, LNG sales and purchase agreement with APLNG to import 7.6 Mtpa (seven point six megatonnes per annum) of LNG into China.
To find out more about our partners, ship-owners and customers, the ‘web-link’ table below allows our web-site readers to easily explore and access our partners’ web-sites.
|Sinopec Group||Charterer and downstream LNG buyer||www.sinopecgroup.com/group/en|
|China Shipping LNG Investment Co., Ltd||Owner and Ship Owner 41%||www.cnshipping.com/en|
|Sinopec Kantons Holdings Ltd||Owner and Ship Owner 39%||www.sinopec.com.hk|
|Mitsui O.S.K. Lines||Owner and Ship Owner 20%||www.mol.co.jp/en|
|APLNG||Upstream LNG seller||www.aplng.com.au/about-project/about-project|
The relationship among all these participants that own CESM’s ships and CESM itself is shown below. Sinopec Kantons Limited and China Shipping LNG Investment Company Limited, have formed ‘CHINA ENERGY SHIPPING INVESTMENT COMPANY LIMITED (CESI)’ and this is our eighty percent (80%) owner.
The diagram below applies…..
LNG Supply chain
China Energy Ship Management will operate and maintain a fleet of eight (8) LNG Vessels delivering clean energy in the form of liquefied natural gas (LNG) from the loading port of Gladstone in Australia to receiving terminals in China. The primary ports for delivery are, Beihai, Qingdao-Shandong, Tianjin, Wenzhou and Lianyungang. The route below graphically shows the predominant sea-routes that will be used with deliveries commencing in 2016.