Hong-Kong based Sinopec Kantons Holdings subsidiary Kantons Investment has entered into an agreement with China Shipping Development to establish a joint venture (JV) in Hong Kong.

Upon establishment, the JV will become a non-wholly owned subsidiary of China Shipping Development.

The registered capital of the JV will be $5m, while Kantons Investment will pay $1.5m to own a 30% stake, with China Shipping Development obtaining the remaining 70% by paying $3.5m.

Sinopec said the JV will initially invest in LNG vessels and subsequently may lease, transport and operate other LNG vessels and related agency business.

The formation of the JV will also facilitate the group’s development as an international oil, petrochemicals and LNG storage and logistics company.

The JV can also diversify and extend the scope of services of the Group to include the LNG shipping industry.