COSCO Shipping Energy Transportation injected 1.7 billion yuan ($253 million) into its LNG investment unit in Shanghai. This move is part of the strategy of this Chinese shipping giant to expand its gas carrier fleet.
Details of the Capital Injection
COSCO Shipping announced that its board has approved this cash injection to Shanghai COSCO Shipping LNG Investment. The funding for this injection comes from the company's own assets, and its aim is to strengthen the capital structure of this subsidiary and support its shipping business.
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Before this injection, the registered capital of Shanghai LNG was 7.13 billion yuan ($1.06 billion), and its assets at the end of June amounted to 30.42 billion yuan.
Other Financial Developments
This is the second major investment action in the Shanghai LNG unit this year. In January, COSCO Shipping Energy injected another $340.3 million into this subsidiary to finance two new LNG carriers with a capacity of 175,000 cubic meters. The total investment for this project amounts to approximately $493.3 million, including contract prices of $477.6 million.
The recent injection comes less than four months after COSCO Shipping Energy signed to secure four more vessels with a capacity of 175,000 cubic meters at Jiangnan Shipyard. These four vessels, valued at 6.45 billion yuan ($953 million), are scheduled for delivery between 2029 and 2030 and are planned for long-term charter with Shell.
Expansion of Gas Activities
COSCO Shipping Energy's gas interests have significantly expanded alongside the larger operations of the company's tankers. The company’s half-year disclosure shows that the group has interests in 97 LNG carriers, with 66 of these vessels actively operating, totaling a capacity of 11.18 million cubic meters. Additionally, another LNG carrier is in service.
During the board meeting, a plan was also approved for financing the delivery of an MR tanker, although details regarding the financing amount or vessel identification were not disclosed.
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