Study On The Application Of Project Financial Leasing Model In LNG Vessels

In recent years,global energy,including China's,is accelerating its transformation.Energy supply is undergoing a long-term transition towards a cleaner,low-carbon direction.As a recognized clean energy source,natural gas is rapidly growing in the global energy consumption structure,which also drives the prosperity and development of LNG trade and shipping.As a financing source different from bank credit,financial leasing has been widely used in various fixed assets and general vessel financing.However,general financial leasing only considers the asset attributes of vessels and can not exert the advantage of strong economic strength of LNG vessel itself,therefore it's not suitable for LNG vessels.Project financial leasing is general financial leasing innovation which combines the characteristics of financial leasing and project financing,and has been applied to large-scale engineering projects such as power plants and rail transit and so on.This paper aims to study on the application of project financial leasing in LNG vesselsand demonstrate the feasibility of LNG vessel' project financial leasing.Firstly,this paper reviews domestic and foreign literatures and research materials on financial leasing and project financial leasing,compares the differences and advantages between project financial leasing and general financial leasing,and summarizes the application conditions of project financial leasing.Secondly,with reference to the application of project financial leaseing in other engineering projects and combined with the situation and characteristics of LNG shipping projects,the theoretical feasibility of project financial leaseing for LNG vessel is analyzed.Thirdly,drawing on and combining the general vessel financial leasing and LNG vessel banking project financing,the paper proposes detailed business arrangement and contract structure of the LNG vessel project financial leasing,especially the guarantee and supervision mechanism in basis of LNG shipping project's economic strength,to obtain limited recourse financing of LNG vessels.In addition,based on the hire model of general financial leasing,the hire model of project financial leasing is introduced,improved and optimized.In the end,the case analysis of Y LNG shipping project of A company is carried out.According to the actual situation and financial requirements of the project,the project financing leasing business arrangement and contract structure are designed specificly.The hire model is used to calculate the leasing hire based on the benificiaries of both the lessor and the lessee.It is finally proved that project financial leasing is applicable to the LNG vessels.Based on previous research on general financial leasing and ship financing leasing,this paper initially conducts the application study of project financing leasing in LNG vessels,draws affirmative conclusions from the theoretical feasibility and practical operability and is some helpful for further research.