Samudera Shipping announces JV to transport Tangguh LNG

Singapore Exchange-listed shipping firm Samudera Shipping Line Ltd announced Friday it had entered into a joint venture agreement with Nippon Yusen Kabushiki Kaisha (NYK), and JSC Sovcomflot to invest in LNG East-West Shipping Company (Singapore) Pte Limited, a company incorporated in Singapore.

Samudera will hold 25 percent shares in LNG East-West, while the remaining balance will be equally shared by NYK and Sovcomflot.

The total consideration of the 25% shares subscription by Samudera is US$ 11.1 million, which was funded by internal sources.

LNG East-West is the owner of a 145,700 CBM LNG vessel currently under construction by Daewoo Shipbuilding & Marine Engineering Co. Ltd. The ship will be under 20 years time charter contract by Tangguh LNG to transport LNG from Berau/Bintuni Bay, Papua province to South Korea and North America.

The time charter rate is fixed from the date of ship delivery to the end of the calendar year in which delivery occurs and thereafter it will be adjusted with reference to the actual ships? operational cost as agreed by the Charterer, said the company.

LNG shipment is expected to commence by 2009. (alex)