LONDON, January 24th, 2021 – Avenir LNG Limited (“Avenir or the Group”) today announced it has entered into a long-term Joint Cooperation Agreement (“JCA”) with Shanghai SIPG Energy Service Co., Ltd (“SSES”) a Chinese joint venture between Shanghai International Port Group (“SIPG”) and Shenergy Group (“Shenergy”) which is responsible in delivering LNG bunker to CMA CGM’s container ships on behalf of SIPG. Under the JCA, Avenir will be responsible for the global marketing of LNG bunkering services in Shanghai Port as well as support SSES with operational and technical services to ensure seamless LNG bunkering operations for the CMA CGM containerships and future customers.
This important milestone expands Avenir’s bunkering network into the rapidly growing Chinese market adding another hub to its existing bunkering network in the Mediterranean, North West Europe and Malaysia.
In support of establishing Shanghai as a leading LNG bunkering hub, Avenir sold its first newbuild 20,000 cbm Avenir Allegiance to SSES. The Avenir Allegiance is the world’s largest LNG bunker vessel and it will provide LNG to the biggest LNG bunker customer at the largest container port in the world. The vessel sale released significant cash back to Avenir. The proceeds will be used to enhance Avenir’s working capital position and fund future growth opportunities.
Commenting on the announcement, Peter Mackey, CEO of Avenir LNG, said “We are thrilled to play an important role in establishing and promoting China’s first LNG bunkering hub in Shanghai. This deal marks another major achievement in Avenir’s development as we continue to expand our LNG bunkering network globally. We
look forward to expanding our long-term relationship with SIPG, Shenergy and CMA CGM.”
Commenting on the announcement, Dr. LUO Wenbin, GM of Engineering & Equipment Department of SIPG, said: “SIPG is making efforts to build the LNG bunkering hub for international vessels in Shanghai Port. SIPG’s subsidiary SSES establish long-term cooperative relationship with Avenir, which will promote the LNG bunkering services for CMA CGM and other international liner customers in Shanghai port and join hands to make a positive contribution to the energy transition and carbon reduction of the shipping and logistics supply chain.”
About Avenir LNG: Collaborating globally with partners to unlock new markets for natural gas, Avenir LNG is a leading provider of small-scale LNG solutions to off-grid industry, power plants and marine transport.