PRC shipping company in JV acquires four LNG vessels

China Shipping Development Company (CSD) and Japan-based Mitsui OSK Lines (MOL) have entered into a joint venture to acquire, finance and time charter long-term four liquefied natural gas carriers with a combined value of up to US$1 billion. The ships will be built by Hudong-Zhonghua Shipbuilding Group, a subsidiary of China State Shipbuilding Corporation.

These ships will be the first LNG vessels to be built for MOL and CSD in China and they are expected to be delivered in 2015 and 2016.

Mayer Brown JSM Hong Kong partner Alastair MacAulay led the team that advised MOL and CSD in relation to the project. Richards Butler Reed Smith represented CSD in its joint venture with MOL. Baker Botts was the US counsel for the charterers, Norton Rose was the Singapore counsel to the lenders and Yao Liang Law Office served as PRC counsel to the shipbuilder.