China’s Jiangnan to build LNG carrier duo for $470 million

China’s Jiangnan Shipyard has secured a contract to build two liquefied natural gas (LNG) carriers worth about $470 million.

China Taiping Insurance Holdings revealed this deal on Monday in a filling with the Hong Kong Exchange.

This is the first order for large LNG carriers in China this year following record orders for such vessels in 2022.

According to the filling, Taiping & Sinopec Financial Leasing (TSFL), a non-wholly owned subsidiary of China Taiping Insurance, and two special purpose vehicles (SPVs), Taiping 26 and Taiping 27, ordered these two 175,000-cbm LNG carriers at Jiangnan.

Jiangnan will deliver the first vessel by March 2027 and the second ship by July 2027, and each of the LNG carriers has a price tag of $235 million.

As part of the finance lease agreements, Taiping 26 and Taiping 27 entered into bareboat charter deals with Shandong Marine Energy (Singapore) or SDME, the filling said.

The charters are for a period of 180 months or 15 years and the charter for the first vessel is estimated to be worth about $315.7 million and for the second $316.5 million, the filling said.

Prior to the delivery dates, SDME can also choose to exercise options to purchase the vessels.

In October last year, Jiangnan signed a letter of intent to build two 175,000-cbm LNG carriers with a company from Singapore, with delivery of the vessels scheduled by July 2027.

Jiangnan’s parent China State Shipbuilding Corporation (CSSC) did not reveal further information, but shipbuilding sources told LNG Prime at the time that Shandong Marine Energy had signed the letter of intent with Jiangnan and that these vessels would go on charter to Sinopec.

Last year, Jiangnan won its first order for large LNG carriers and will build in total six LNG vessels for a unit of UAE’s Abu Dhabi National Oil Co (Adnoc).

These “LNG Jumbo” dual-fuel carriers will feature GTT’s Mark III Flex membrane system and a partial reliquefaction system.

With the new contracts, Jiangan now has eight 175,000-cbm LNG carriers on order.

Most Popular

Excelerate buys GasLog LNG carrier

US FSRU player Excelerate Energy has purchased a 2007-built steam liquefied natural gas (LNG) carrier from GasLog Partners, a part of Greek LNG shipping firm GasLog, according to brokers.

NextDecade, Bechtel agree $9 billion EPC deals for two Rio Grande LNG trains

US LNG firm NextDecade and compatriot Bechtel have finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.

Atlantic LNG shipping rates jump to $49,750 per day

Atlantic spot LNG shipping rates rose to $49,750 per day this week, while European prices also jumped compared to the previous week.

More News Like This

GasLog, Jiangnan ink LoI for LNG carrier duo

China’s Jiangnan Shipyard has signed a letter of intent with Greek LNG shipping firm GasLog to build two liquefied natural gas (LNG) carriers, according to shipbuilding sources.

Adnoc L&S takes delivery of LNG carrier in China

UAE’s Adnoc L&S, a unit of state-owned energy giant Adnoc, has taken delivery of the second 175,000-cbm LNG carrier from China’s Jiangnan Shipyard.

China’s Sinopec secures price cut for APLNG contract

China’s state-controlled energy giant Sinopec has secured a lower price for its long-term liquefied natural gas supply deal with Australia Pacific LNG following a price review, according to APLNG shareholder Origin Energy.

Australia Pacific LNG pens new domestic gas deals

Australia Pacific LNG, the operator of the 9 mtpa LNG export facility on Curtis Island near Gladstone, has signed two new domestic gas sale agreements.