CIMC Enric has recently entered into a strategic cooperation agreement with China LNG Group.
In addition, pursuant to the strategic cooperation agreement and the agreement for acquisition of LNG tank containers, the China LNG Group agreed to, through Gangzong Trade, a wholly-owned subsidiary of the China LNG Group, execute the agreement for acquisition of 275 LNG tank containers with CIMC Enric Holdings at a consideration of RMB 126.1m (approx $20m).
Furthermore, China LNG Group has agreed to purchase an additional 800 to 1,000 LNG tank containers from CIMC Enric by the end of this year at a preferential price. China LNG Group has also agreed to preferentially purchase equipment manufactured by CIMC Enric under the same market conditions in the procurement of cryogenic equipment, including but not limited to LNG tank containers, LNG refilling trucks, LNG Dewar flasks and other products.
As part of the deal, CIMC Enric will provide the China LNG Group with a full range of after-sales services, technical support and emergency support, in addition to the tank containers. It will even invest in the construction of vacuum facilities in the logistics distribution centre of the latter, according to the agreement.
China LNG Group is a company with headquarters in Hong Kong and listed in the Hong Kong Stock Exchange. Their principal activities are the development of LNG businesses in China. They stated in a public announced that their LNG business is in a period of rapid development, resulting in a large number of LNG equipment purchase demands.
The statement further explains that, “The use of tank containers for the transport of LNG is one of the important measures taken by the PRC for the strategy to secure natural gas supply amid rising winter demand. The Group conducts the south-to-north transport of LNG with tank containers and multimodal transport pilots, which will create a new model of LNG supply chain. The Group plans to purchase 5,000-10,000 LNG tank containers in the next five years to meet the rapidly growing business needs.”
After the signing ceremony, Mr YANG Xiaohu, general manager of CIMC Enric, pointed out that, with the promulgation of a series of policies favouring clean energies, natural gas will embrace a fast developing “Golden Decade”, and will bring along far-reaching impact to the whole natural gas industry chain, as well as opportunities for the win-win development of CIMC Enric and its strategic partners.