China’s largest private shipyard, Yangzijiang Shipbuilding, has won its first order for large liquefied natural gas (LNG) carriers from a European owner.
Under the contract, Yangzijiang said it would build two 175,000-cbm LNG carriers and deliver them between 2025 and 2026, it said in a statement on Wednesday.
Yangzijiang did not reveal the name of the European owner or the price tag.
Shipbuilding sources told LNG Prime that Germany’s Hammonia Reederei is behind this order and that the vessels are each worth about $235 million.
Hammonia currently has no LNG carriers in its fleet which includes containerships, bulk carriers, and also multi purpose vessels, the company’s website shows.
Germany is fast-tracking LNG imports and plans to start importing liquefied natural gas by the end of this year as it looks to replace Russian gas pipeline supplies and boost energy security.
The German government backed the charter of five FSRU’s that will start work in Wilhelmshaven, Lubmin, Brunsbuettel, and Stade as import terminals during this year and 2023.
French LNG containment giant GTT recently signed a technical assistance and license agreement with Yangzijiang, enabling the yard to construct vessels using GTT membrane technologies.
Also, Yangzijiang has already secured an order for four 8,000 TEU dual-fueled container vessels from Singapore’s Pacific International Lines, featuring GTT tech.
The shipbuilder also recently won a large order from Switzerland-based shipping giant MSC for 12 LNG-powered containerships. These vessels will not have GTT tanks.
Yangzijiang said the the two LNG carriers are the company’s first GTT Mark III LNG carrier order after obtaining the license in early September.
They will feature GTT’s Mark III Flex membrane tanks and two dual-fuel MAN 5G70ME-C10.5-GA-EGRBP models for the main propulsion system.
In addition, the LNG carriers will have a reliquefaction system with a capacity of 1.5 tons/hour.
Yangzijiang eyes more LNG carrier orders
Recognizing the changing landscape and increased industry focus on green shipping, Yangzijiang
envisions to extend its foothold in this sector, the firm said.
The global LNG market is expected to be tight till 2026 as Europe’s sanctions on Russian gas exports increase demand for LNG, Yangzijiang said, citing data by the IEA.
However, the LNG carrier supply continues to lag behind due to limited capacity, the firm said.
“Leveraging on the demand-supply gap and Yangzijiang’s own research and development capabilities, the group is confident to capture a larger market share in this sector,” it said.
With this new order, Yangzijiang joins Hudong-Zhonghua, the largest LNG carrier builder in China, as well as Jiangnan and DSIC who won their first large LNG carrier orders this year.
“This is a new chapter for the group with our maiden GTT Mark III LNG carrier contract win,” Ren Letian, executive chairman and CEO of Yangzijiang said in the statement.
“Yangzijiang is the first non-state owned yard in China to break into this market, which is traditionally dominated by the Korean shipyards. This milestone was a result of our consistent development and acquisition of technologies and licenses over the years,” Letian said.