COSCO Shipping Energy Expands with a Major Acquisition Worth 1.261 Billion RMB

COSCO Shipping Energy (CSE) is advancing its strategic expansion into the chemical and liquefied petroleum gas (LPG) logistics supply chain through a significant acquisition. CSE will invest approximately 1.261 billion RMB via its newly established wholly-owned subsidiary, acquiring multiple assets and equity stakes in several affiliated companies. This marks a major step in strengthening our position in the hazardous chemical and LPG transportation sectors.

As part of this acquisition, CSE will acquire:
- A 70% equity stake in Shenzhen COSCO Longpeng LPG Shipping Co., Ltd., which operates six LPG vessels and has access to the Taiwan Straits shipping routes.
- An 87% stake in Hainan Zhaogang Shipping Co., Ltd., a key player in LPG transportation and port services.
- Two LPG vessels, "Jinguiyuan" and "Mudanyuan," which were built in 2023 and are currently operational.
- 100% equity in COSCO Chemical Shipping (Shanghai) Co., Ltd. and COSCO Shipping Hong Kong, both experts in the transportation of bulk chemicals.

This acquisition is a crucial move for CSE, allowing us to expand from our traditional oil and gas transport services into chemical and hazardous materials transportation. By integrating these assets, CSE will enhance its presence in the energy and chemical logistics market, adding four new subsidiaries and diversifying its business portfolio.

Global demand for LPG and chemical logistics is on the rise, and CSE is poised to meet this growing demand. Shenzhen Longpeng and Hainan Zhaogang both reported strong financial results in the first half of 2024, reflecting the strength of the market. The rising demand for LPG vessels and the increasing cost of shipbuilding have also boosted the value of these assets, making this acquisition even more strategic.

As a leader in energy logistics, CSE is dedicated to optimizing its supply chain and expanding its global footprint. By leveraging the expertise and resources of our parent company, COSCO Shipping Group, we will continue to enhance our capabilities and competitiveness in the international market.

This acquisition not only strengthens our operational efficiency but also positions us as a key player in the hazardous chemical and LPG logistics market. We look forward to continuing our growth and delivering long-term value to our shareholders.

by Xinde Marine News Chen Yang

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