DSIC inks LNG shipbuilding deal with Chinese JV

China’s Dalian Shipbuilding Industry (DSIC) has officially signed a deal to build two LNG carriers for a joint venture consisting of China Gas, Wah Kwong Maritime Transport, and CSSC Shipping.

LNG Prime reported on July 19, citing shipbuilding sources, that DSIC will build two 175,000-cbm LNG carriers for the JV.

China Gas has a 30 percent stake in the Sea Jade Investment JV, Wah Kwong owns 45 percent, and CSSC Shipping owns 25 percent.

The JV and DSIC signed the shipbuilding deal on August 21, according to a statement by the shipbuilder.

Besides two firm 175,000-cbm LNG carriers, the deal also includes two optional vessels.

Moreover, DSIC confirmed that the 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 shipbuilder did not provide further information.

China Gas, CSSC Shipping, and Wah Kwong are expected to pay about $235 million per vessel.

Following delivery, the LNG carriers will serve China Gas Hongda Energy Trading, a unit of China Gas, under 20-year charter deals, Hong Kong-based natural gas operator and distributor, China Gas, previously said.

The charter hire for each LNG carrier will be at a daily hire rate of about $80,000 to $100,000, payable on a monthly basis, China Gas said.

Including this contract, DSIC now has ten 175,000-cbm LNG carriers on order.

In June, 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.

In March last year, 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.

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