New York-listed boxship owner Seaspan is stepping up diversification efforts through a new LNG cooperation deal with China's Cosco Shipping Energy Transportation (CSET).
It has signed a framework agreement for a strategic alliance with the state-owned company, which has the largest LNG carrier fleet in China.
Both parties are committed to strengthening their "exchange of and collaboration on opportunities relating to LNG investments, LNG projects, LNG transportation, ethane transportation, or other related and mutually beneficial projects," Seaspan said.
The aim is to leverage the strengths and networks of both companies.
They hope to take advantage of CSET's experience in the building, operation and management of LNG carriers, plus Seaspan's global experience in boxships, as well as its directors' expertise and networks in the energy sector.
Liner partnership led to new tie-up
Seaspan CEO Bing Chen said: "Seaspan has longstanding integrated services with Cosco Shipping in container shipping, and we are proud to carry this partnership forward to opportunities in LNG.
"We are confident that the combined strengths of both companies will generate significant value in the future."
Better known as a VLCC owner, CSET has 29 LNG vessels in operation and nine on order.
This is not the first attempt by Seaspan to diversify from its core liner operations.
Last year it agreed to pump $200m into restructuring Singapore OSV owner Swiber Holdings.
It said Swiber would diversify into the LNG power sector and reorganise its debt after two years of court oversight in a plan designed to resuscitate the troubled Singapore company.
Last week, Seaspan said it would invest $10m upon closing the deal in exchange for 80% of a "New Swiber" that will secure a development stage LNG-to-power project in Vietnam.
The remaining $190m will be given to pay for construction, operation and maintenance if Swiber meets certain milestones in the $1bn endeavour.
Seaspan has been contacted for further comment on the Cosco move.
