China National Offshore Oil Corporation (CNOOC), Sinotrans & CSC Group and China Sanjiang Space Group have signed an agreement this week to jointly develop the LNG industrial chain on the Yangtze River.

The three companies will make joint efforts in the construction, conversion of LNG vessels and relevant equipments and LNG shipping to promote the development of the whole LNG industrial chain.

“Sinotrans & CSC currently have more than 2,000 vessels which accounts for about 40% of the shipping capacity on Yangtze River, most of these vessels use diesel engines. The rising fuel prices have brought huge financial pressure to the company. Every year the group consumes about 600,000 tons of diesel fuel which cost around RMB3bn,” an official from Sinotrans & CSC said, adding that it could save up to 20% of fuel cost if the vessels switch to LNG engines.

Another energy conglomerate PetroChina has already made plans on the same market ahead of CNOOC. PetroChina plans to invest RMB20bn to develop 20 LNG filling terminals along the river, currently five of them have already been approved by the government.

-- Source from Sino Ship News