Yangzijiang Shipbuilding bags maiden contract for LNG carriers

Two containerships under construction at Yangzijiang Shipbuilding's Xinfu Yard. Looking ahead, the company envisions extending a foothold in the global LNG sector. PHOTO: YANGZIJIANG SHIPBUILDING

SINGAPORE – Yangzijiang Shipbuilding announced on Wednesday it has won its first order for two 175,000 cubic m liquefied natural gas (LNG) carriers from an unnamed European customer.

The vessels will be equipped with GTT (Gaztransport & Technigaz) Mark III Flex membrane tanks and are scheduled to be delivered between 2025 and 2026.

The company said this marks its first GTT Mark III LNG carrier order after it obtained its GTT licence in early September.

While the value of the contract was not disclosed, Yangzijiang said its order book now stands at an all-time high of more than US$10 billion (S$14.1 billion).

Highlighting the membrane tanks as “safer and more space efficient”, Yangzijiang said the vessels will adopt two dual-fuel models for the main propulsion system and a re-liquefaction system with a capacity of 1.5 tonnes per hour – which would thereby reduce greenhouse gas emissions.

The vessels are of the new conventional LNG carrier size at 170,000 to 180,000 cubic m.

According to Yangzijiang, most of the newbuilding orders over the past year are of this capacity, and are deemed most suitable for exports of LNG from the new United States Gulf liquefaction terminals through the enlarged Panama Canal, and also across the Pacific to Asia.

Looking ahead, Yangzijiang said that it envisions extending a foothold in the global LNG sector – which is expected to be tight until 2026 as Europe’s sanctions on Russian gas exports increase demand for LNG.

The group said it is confident of capturing a larger market share in this sector as it leverages the demand-supply gap as well as its own research and development capabilities.

Highlighting Yangzijiang as the first non-state-owned yard in China to break into the LNG market, executive chairman and chief executive Ren Letian said the latest contract win demonstrates the group’s “growing reputation of being able to build greener vessels competitively and on time”.

“We look forward to delivering more and more green vessels in the years to come,” he added. THE BUSINESS TIMES

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