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.

Most Popular

YPF CEO: FID on second Argentina FLNG expected by July

Pan American Energy, Golar LNG, YPF, Pampa Energia, and Harbour Energy plan to take a final investment decision on Argentina's second floating LNG production unit by the end of July, according to YPF CEO Horacio Marin.

Sempra still targets Port Arthur LNG expansion FID in 2025

Sempra Infrastructure, a unit of Sempra, still expects to make a final investment decision on the second phase of its Port Arthur LNG export project in Texas in 2025.

Egypt’s EGAS inks new FSRU charter deal with Hoegh Evi

Norwegian FSRU player Hoegh Evi has signed a new charter deal with Egypt’s EGAS to deploy a converted FSRU in Egypt. Hoegh Evi will convert the LNG carrier Hoegh Gandria to a floating storage and regasification unit.

More News Like This

LNG-fueled MSC San Francisco delivered in China

China’s Yangzijiang Shipbuilding has handed over the LNG dual-fuel containership, MSC San Francisco, to Switzerland-based MSC.

PIL adds new LNG-fueled containership to its fleet

Singapore’s Pacific International Lines (PIL) has added another LNG-fueled vessel to its fleet.

LNG-powered MSC Germany delivered in China

China’s Yangzijiang Shipbuilding has handed over the LNG dual-fuel containership, MSC Germany, to Switzerland-based MSC.

MSC adds another LNG-powered containership to its fleet

China’s Yangzijiang Shipbuilding has handed over the LNG dual-fuel containership, MSC Annamaria, to Switzerland-based shipping giant MSC.