Chinese logistics service provider Hengtong Logistics is to ink a cooperation agreement with CIMC Raffles to jointly develop LNG related business including the construction of medium-small scale LNG carriers and LNG bunkering vessels. 

According to the announcement, Hengtong Logistics will be responsible for LNG vessel shipping routes design application and the LNG ship design. CIMC Raffles will be responsible for providing suggestions of the ship design.

The two parties are agreed to sign official shipbuilding contract later and will consider CIMC Raffles as the preferred EPC contractor of the new shipbuilding project.

Additionally, Hengtong announced that the company will issue convertible bonds to raise RMB300m ($43.6m) for the construction of one 7,500 cu m LNG bunkering vessel.

Read more: Global Energy Ventures inks LOI with Yantai CIMC Raffles for up to eight CNG ships

Hengtong Logistics, based in Yantai, Shandong province, is involved in clean energy sector including LNG and LPG distribution,transportation and gas station construction and operation. The company expects the new project will diversify its business scope and increase its competitiveness in the LNG sector.