Israel’s Zim sets sight on large LNG-powered containerships

Israel’s Zim is looking to take on charter five ultra-large LNG-powered containerships in order to comply with the new IMO rules and slash emissions, joining its larger peers CMA CGM and Hapag-Lloyd.

Shipbuilding sources tell LNG Prime that an unidentified owner is in talks with several yards, including Chinese and Korean shipbuilders, as it plans to order five 15,000 TEU dual-fuel containerships that would go on charter to Zim.

The sources did not find reveal the name of the owner due to confidentiality reasons and as the talks are still in progress. If completed, the order could be worth more than $750 million.

LNG Prime contacted Zim for a comment but we did not receive a response by the time this article was published.

Riding the LNG-powered containership wave

Israel’s largest cargo shipping company Zim, which recently closed its first public offering on the New York Stock Exchange, is one of many owners looking to comply with the IMO 2020 sulphur cap on emissions.

But it seems that LNG-powered containerships are on top of the pyramid as the orders for these vessels keep growing.

CMA CGM already operates several LNG-powered containerships, including the 23,000 TEU giants, while Hapag-Lloyd recently ordered five 23,500+ TEU LNG-powered vessels at SHI for $1 billion.

The German liner is also converting a 15,000 TEU vessel to go on LNG in China which would help it decide on further conversions.

In addition, Singapore’s Eastern Pacific Shipping has recently ordered six additional 15,000 TEU LNG-powered vessels at South Korea’s KSOE with a price tag of about $826 million.

KSOE’s unit Hyundai Samho is already building six LNG-powered neo-Panamax containerships for EPS.

This sextet will go on charter to CMA CGM that leads the LNG-powered containership surge and aims to have a fleet of 26 such vessels of various sizes by 2022.

Moreover, LNG Prime understands that the French firm could add even more LNG-powered vessels. The firm is currently looking to place an order for smaller dual-fuel ships, according to the sources.

Most Popular

Cheniere produces first LNG cargo at Corpus Christi expansion project

US LNG exporting giant Cheniere has produced the first cargo at the Corpus Christi Stage 3 expansion project in Texas.

Centrica seals LNG supply deal with Petrobras

UK-based energy firm Centrica has signed a 15-year LNG supply deal with Brazil’s state-owned energy firm Petrobras.

Japan’s Japex boosts LNG sales

Japan Petroleum Exploration (Japex) boosted its sales of liquefied natural gas (LNG) in the April-December period last year.

More News Like This

Kunlun claims Hong Kong’s first STS LNG bunkering op

PetroChina's Kunlun Energy has completed what it says is the first ship-to-ship offshore LNG bunkering operation in Hong Kong.

Hapag-Lloyd to add more LNG-powered containerships to its fleet

Germany's Hapag-Lloyd is expected to add more LNG dual-fuel container vessels to its fleet with a new order at South Korea's Hanwha Ocean, according to shipbuilding sources and brokers.

CMA CGM inks LoI for LNG-powered containerships

CMA CGM and CSSC's Jiangnan Shipyard recently signed the LoI, sources told LNG Prime on Wednesday. According to the sources,...

Hapag-Lloyd wraps up financing for 24 LNG-powered containerships

Hapag-Lloyd said on Tuesday that the financing will be carried out on the basis of its "green financing framework"...