China’s COSCO Shipping Development signed a 10-year sale and leaseback arrangement with the liquefied natural gas shipper Golar LNG.

According to the COSCO Shipping Development’s filing to the Hong Kong stock exchange, the company has agreed to purchase the 160,000-cbm LNG carrier Golar Crystal for a total consideration of US$187 million.

China’s COSCO Shipping Development, Golar LNG agree sale and leaseback of Golar Crystal

LNG carriers Golar Ace and Golar Crystal at Gibraltar - Image courtesy of Gibraltar Port Authority

Under the arrangement, Golar LNG will charter the vessel for a period of 10 years with an upfront hire payment of $72 million.

In addition, Golar LNG agreed to pay a principal hire in the aggregate amount of $62 million at an agreed schedule with variable hire still to be calculated.

COSCO Shipping Development has been transformed from a container liner operator, formerly known as China Shipping Container Lines, into a financial services platform focusing on the provision of ship leasing and shipping-related financing services.

Source: LNGWorldNews