COSCO Qidong Wins FSRU Deal

COSCO Chinas COSCO (Qidong) Shipyard has entered into a contract with an unnamed European buyer to build a Floating Storage Regasification Module (FSRU module). The companys parent, COSCO Shipping International (Singapore), said that its Qidong shipyard and the European buyer have agreed to keep the contract prices confidential. As disclosed, the module is scheduled for delivery in the first quarter of 2018. COSCO Shipping revealed earlier this month that it is planing to sell equity interest in its shipyard assets for USD 211.5 million to COSCO Shipping Heavy Industry. The move comes as part of an effort to centralize operations and management, and it would include disposal of a 51% equity interest in COSCO Shipyard Group, a 50% equity interest in COSCO (Nantong) Shipyard and a 39.1% equity interest in COSCO (Dalian) Shipyard. The completion of the sale and purchase is conditional upon approval of the company’s shareholders. The company said it would use the sale proceeds from the disposal to fund future projects, which may include mergers and acquisitions.