China LNG Group enters LNG leasing agreements

China LNG Group has entered into two framework agreements regarding the development of LNG vehicle and vessel leasing activities in China.

Shanghai Xin Si Yuan Logistic Company Limited

On 27 November, China LNG Group entered into a cooperation agreement with Shanghai Xin Si Yuan Logistic Company Limited for the development of LNG vehicle leasing services in the PRC.

The agreement includes the following:

• China LNG Group will set up a finance leasing company in Shanghai, specializing in LNG vehicle and vessel finance leasing.
• Xin Si Yuan will act as a consultant for China LNG Group, in relation to conducting heavy-duty vehicles leasing business.
• China LNG Group intends to set up a ‘Green Vehicle Club’ to provide customers discount on LNG and insurance, accidental assistance, repair and maintenance on LNG heavy-duty vehicles, legal support and more.

Xin Si Yuan is an internet logistics company, which developed an internet logistic platform to provide information to match the needs of customers who want to deliver goods, with owners of vehicles.

Jiaxing Dadu New Logistic Company Limited

China LNG Group has also entered into a framework cooperation agreement with Jiaxing Dadu New Logistic Company Limited, in relation to the development of LNG vehicle and vessel leasing services in China.

The agreement includes the following:

• China LNG Group can use Jiaxing Dadu’s advantage of mass transport resources controlled by the transportation platform of Jiaxing Dadu.
• China LNG Group can entrust Jiaxing Dadu with management of the vehicles, which can be divided into two parts: vehicle management and driver management.
• Jiaxing Dadu can provide China LNG Group with real-time GPS information of vehicles on financial leasing, as well as everyday consumption of LNG of each vehicle.
• Both parties intend to invest in 50 LNG vehicles in the first stage of the financing lease business on Jiaxing Dadu’s transport platform trial operation.
• Both companies also agree to promote the use of LNG in Jiangsu and Zhejiang inland water transport and shipping along the Yangtze River. The parties intend to invest in three LNG pilot ships as soon as possible.

Jiaxing Dadu is the leading enterprise in regional logistics industry. It currently owns proprietary warehouse, container yard, container transport vehicles, import-export freight forwarders and customs brokers in Jiaxing Zhapu Port, which constitute the complete logistics chain.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/small-scale-lng/28112014/china-lng-group-enters-vehicle-leasing-agreements-1881/