China Shipping Development Co, a subsidiary of China Shipping Group, was reported by China Knowledge to be teaming up with PetroChina International Co, an affiliate of China National Petroleum Corp, to set up a joint venture for liquefied natural gas (LNG) transportation.

The new company, which will be 90 per cent owned by China Shipping Development, expects to operate two to three ships costing US$160m each. Initially it will be responsible for importing LNG import from countries such as Australia and will probably cooperate with other shipping enterprise in the near future.

It is estimated that China’s LNG imports are likely to exceed 12m tons in 2010.