📋 Tender Overview
COUNTRY China
STATUS Approved
AREA OF OPERATION Transport Infrastructure
TYPE Non-Sovereign
Project Context: China aims to reach a peak in its carbon dioxide (CO2) emissions before 2030 and achieve carbon neutrality by 2060. As a cleaner alternative, natural gas has become an important substitute of coal, given its significantly lower emissions of greenhouse gases and air pollutants. Increasing liquified natural gas ( LNG ) transportation capacity is critical for the country as demand for natural gas has grown significantly. New LNG carriers will enable the country to meet increased demand.
The borrower is one of the leading companies in aircraft and shipping leasing in China and a wholly owned subsidiary of the Bank of Communications.
Project Description: NDB has approved a loan to Bank of Communications Financial Leasing Co. Ltd. ( BCFL ) to acquire at least three large scale LNG carriers powered by the low-pressure dual-fuel propulsion system with capacity to transport 174 thousand m3 of LNG each. LNG carriers will meet all necessary environmental and safety standards of the International Maritime Organization.
Project Objective: The Project will add new LNG transportation capacity for import of LNG to China. The Project is primarily aligned with SDG 7 to ensure access to affordable, reliable, sustainable and modern energy for all. The Project also indirectly contributes to Greenhouse Gas emissions reduction which will be achieved via supply of LNG for domestic consumption and substitution of coal, thereby in line with SDG 13 Climate Action .
Implementation Arrangements: NDB loan will be provided to BCFL. BCFL will be the lessor of the vessels with lessees being ultimately majority owned by Chinese LNG importers.
