China’s Dalian Shipbuilding Industry (DSIC) has officially signed a deal to build two 175,000-cbm LNG carriers for a joint venture consisting of China Gas, Wah Kwong Maritime Transport, and CSSC Shipping.
DSIC and the three firms signed the deal on April 26, according to a statement by the shipbuilder.
The joint venture is Ocean Jade Investment.
LNG Prime was the first to report in January, citing shipbuilding sources, that the three companies were expected to order two more LNG carriers from DSIC this year.
The first JV, Sea Jade Investment, ordered two 175,000-cbm LNG carriers at DSIC in August last year for delivery in 2027.
Also, the first two vessels will feature WinGD dual-fuel low-speed engines with integrated ICER system, a reliquefaction unit, and GTT’s Mark III Flex membrane containment system.
The two new vessels will also have the same technologies, DSIC said.
DSIC did not provide any additional information regarding the order.
With this contract, DSIC now has 15 175,000-cbm LNG carriers on order.
In June last year, DSIC kicked off the construction of the first of eight 175,000-cbm LNG carriers for compatriot China Merchants Energy Shipping (CMES), a unit of China Merchants Group.
Back in March 2022, CMES placed an order for two dual-fuel LNG carriers, DSIC’s first order for large LNG carriers, and after that added six more vessels.
Besides these orders, DSIC will build three LNG carriers for a joint venture consisting of units of Cosco Shipping Energy Transportation and Sinopec.
China Gas charter
Last month, Hong Kong-based natural gas operator and distributor, China Gas, said that its unit China City Gas has entered into a joint venture agreement with Wah Kwong Maritime’s Summit Energy and CSSC (Hong Kong) Shipping’s Fortune Clean Energy.
China City Gas has a 30 percent stake in the JV, Summit Energy owns 45 percent, and Fortune Clean Energy owns 25 percent.
According to China Gas, the Ocean Jade Investment JV will set up two wholly-owned special purpose vehicles for the purpose of acquiring and owning each of the LNG vessels.
China Gas said at the time that its unit expects to commit $142.8 million in the new company.
Based on its 30 percent share, it could mean that the LNG carriers are each worth a bit more than $235 million.
Following delivery, the JV’s two new LNG carriers will also serve China Gas Hongda Energy Trading, a unit of China Gas, under 20-year charter deals, China Gas said.
The charter hire for each LNG carrier will be at a daily hire rate of about $87,000 to $100,000 per month, it said.
