Chinese leasing newcomer Huaxia Financial Leasing has joined the red-hot LNG carrier sector as part of the company’s plan to diversify into green shipping.
The leasing company disclosed that it has bought the 145,000-cbm Methane Heather Sally (built 2007) from US-listed GasLog Partners. The deal was done through its special purpose company.
Huaxia Financial did not disclose the purchase price of the Samsung Heavy Industries-built LNG carrier but said the vessel is on charter to Shandong Marine Energy in Singapore.
Shandong Marine Energy is a unit under China’s third-largest shipping company Shandong Marine Group, which also owns Pacific Gas.
Last month, GasLog Partners disclosed that it had concluded a time-charter contract for the Methane Heather Sally to an unnamed South East Asian company for three years.
The organisation also executed a sale-and-leaseback agreement for the same vessel, for $50m with no repurchase option or obligation when that charter expires in mid-2025.
GasLog Partners said the sale-and-leaseback deal is expected to be completed in the fourth quarter and should release approximately $17m of incremental net liquidity.
Huaxia Financial said the acquisition of the Methane Heather Sally is part of the company’s policy of “conforming to the development trend of dual carbon goals and building a green leasing brand”.
It said the LNG carrier will help the firm to make its first step towards green shipping corridors as the shipping industry is aiming to achieve global net-zero greenhouse gas emissions by 2050.
Huaxia Financial joined the shipping market at the end of last year by ordering 12 ultramax bulker newbuildings at two Chinese shipyards — eight at Chengxi Shipyard and four at Nantong Xiangyu Shipbuilding & Offshore Engineering for delivery in 2024.
A few months later, it added two more ships at Nantong Xiangyu, lifting its total orderbook to 16 newbuildings.
Shipbuilding sources said Huaxia Financial ordered the ultramax bulkers on the back of charter contracts from domestic shipping companies.
Shandong Marine Energy joined the LNG carrier sector in April this year when it bought the Japanese-built, 137,000-cbm Gemmata (built 2004) from Shell.
The sales price of the G-class series of LNG carrier was not disclosed.
VesselsValue puts the market value of the Gemmata at $47.53m. The Moss-type LNG carrier has been time-chartered back to Shell for six years.
