Yangzijiang Terminals China Holdings (YTCH), a subsidiary of Singapore-listed Yangzijiang Shipbuilding, has formed a new LNG joint venture company – Jiangsu Run Yuan Energy – with Wuxi China Resources Gas (WCRG) and Jiangyin Xinyangchuan Enterprise Management Center.
WCRG is a leading gas utilities group in China while Xinyangchuan is an investment firm focussed on energy, manufacturing and property development. The three companies signed the JV agreement on 14 January 2021. YTCH will hold 30% of the business, WCRG will hold 51% and Xinyangchuan the remaining 19%.
Jiangsu Run Yuan Energy will construct LNG storage facilities, participate in LNG trading, and conduct business relating to other parts of the LNG supply chain. It will have an aggregate initial issued and paid-up capital of RMB 20 million (€2.5 million).
The Yangzijiang Shipbuilding says that it is: ‘of the view that the proposed establishment of the joint venture company is in the long-term interest of the group as it will provide the group with an initial exposure to a broader range of LNG-related business, set the stage for it to capture the long-term growth potential in this market segment, and enhance shareholders’ value.’