ENN Natural Gas Co., Ltd. (stock code: 600803.SH) recently announced that on July 15, it held the 17th meeting of the 10th Board of Directors, during which it reviewed and approved the “Proposal on Guarantee Provision by a Wholly-Owned Subsidiary for Three Associated Companies.” According to the proposal, the wholly-owned subsidiary, ENN LNG (Singapore) Pte. Ltd. (ENN Singapore), will provide credit enhancement guarantees for three associated companies—Deneb Ocean, Altair Ocean, and Vega Ocean—each with a maximum guarantee of USD 1.82 million. The proposal will be submitted to the general shareholders’ meeting for further review.

According to the announcement, the three associated companies will act as the investment entities to construct three LNG carriers, each with a capacity of 174,000 cubic meters, at Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. The construction will be financed through leasing arrangements with a maximum financing amount of USD 182 million for each vessel, and the financing agreements will have a 15-year term post-delivery. ENN Singapore will provide the credit enhancement guarantees and sign equity pledge documents based on its equity holdings in the three associated companies, with a total guarantee amount not exceeding USD 5.46 million and a total equity contribution of USD 2.34 million for the 1% shareholding.

The purpose of these credit guarantees is to support the construction of LNG carriers through lease financing to meet ENN NG’s growing demand for shipping capacity. In recent years, as domestic demand for natural gas has steadily increased, ENN NG has strengthened its domestic and international resource pool, securing over 10 million tons per year through long-term overseas purchase agreements. Concurrently, the third phase of ENN NG’s Zhoushan LNG receiving terminal is scheduled for completion and commissioning in September 2025, which will bring the annual processing capacity to over 10 million tons. The implementation of these financing leases for international LNG carriers will further enhance ENN NG’s flexibility in delivering overseas resources.

After thorough discussion by all directors, the guarantee decision was deemed compliant with relevant laws, regulations, and the company’s articles of association, with no detrimental impact on the interests of the company or its shareholders. Upon delivery, the three vessels will join ENN NG’s international LNG shipping fleet, providing robust support for expanding platform-based gas trading, particularly in executing LNG long-term supply agreements. This strategic enhancement of shipping capacity will further strengthen ENN NG’s competitiveness in the global LNG market, creating greater value for shareholders.