Yangzijiang working on Yangtze LNG hub

Chinese private shipyard Yangzijiang Shipbuilding is working on a liquefied natural gas (LNG) storage and distribution terminal on the shore of China’s Yangtze River in order to diversify its revenue streams across the maritime chain.

Yangzijiang said in its financial results report on Thursday that the group is working towards converting the existing chemical terminal located on the shore of Yangtze River to an LNG terminal with storage and distribution infrastructure.

“The new initiative is expected to diversify its revenue streams across the maritime value chain through the provision of LNG terminal services, LNG storage and distribution services, whilst strengthening the collaborations with LNG shipping liners as well as LNG traders,” it said.

Yangzijiang said in a separate statement on Thursday that its unit Jiangsu Yangzijiang Shipbuilding purchased 100 percent of Jiangsu Jiasheng Gas for about $62.3 million.

Jiasheng Gas has a 45 percent stake in Jiangsu Yangzi Jiasheng Terminal, formerly known as Odfjell Terminals (Jiangyin).

In 2019, Yangzijiang acquired 55 percent equity interest in Jiasheng Terminal, and upon completion of the new acquisition, the group holds 100 percent equity interest in the terminal, it said.

Increasing LNG demand

The group intends to convert the terminal’s petrochemical terminal site and adjacent land in the upstream Yangtze River region to an LNG facility, upon obtaining the relevant government approval, it said.

Also, Jiasheng Gas owns the land site which is adjacent to the terminal and the group intends to build LNG filling and storage facilities there.

“Together with the terminal service, the group aims to build up an integrated LNG supply chain including complete terminal service, LNG filling, storage and distribution in the upstream Yangtze River region, which will serve as a LNG logistics hub,” Yangzijiang said.

The firm added that the potential collaborations with LNG shipping liners and traders will allow it to capitalize on the increasing LNG demand in the region.

With five shipyards in Jiangsu, along the Yangtze River, the group produces a broad range of commercial vessels including containerships, bulk carriers, and LNG carriers,

Yangzijiang won its first order for large LNG carriers in October last year.

Prior to that, it signed a technical assistance and license agreement with GTT, enabling the yard to construct vessels using GTT membrane technologies.

Yangzijiang also previously secured an order for four 8,000 TEU dual-fueled container vessels from Singapore’s Pacific International Lines, featuring GTT tech.

In addition, the shipbuilder won a large order from Switzerland-based shipping giant MSC for 12 LNG-powered containerships. These vessels will not have GTT tanks.

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