Mainboard-listed Yangzijiang Shipbuilding (YZJ) has won its first order for two 175,000 cubic metres liquefied natural gas (LNG) carriers.
The order brings the group’s order book to an all-time high of above US$10 billion ($14.20 billion).
According to YZJ, the order was placed by a European customer and the vessels are slated to be delivered between 2025 to 2026.
These vessels will be the group’s first GTT Mark III LNG carrier order after obtaining the GTT license in early September this year.
Vessels measuring 170,000 cubic metres-180,000 cubic metres is said to be the new conventional LNG carrier size. Most newbuilding orders over the past year are of this capacity and are deemed most suitable for exports of LNG from the new US Gulf liquefaction terminals through the enlarged Panama Canal and across the Pacific to Asia, says YZJ in its Oct 26 statement.
“Recognizing the changing landscape and increased industry focus on green shipping, Yangzijiang envisions to extend its foothold in this sector. The global LNG market is expected to be tight till 2026 as Europe’s sanctions on Russian gas exports increase demand for LNG,” continues the Mainboard-listed company.
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With global LNG trade estimated to increase 17% by 2025 from 2021 (According to the International Energy Agency or IEA) from the previous forecast of 4%, the LNG carrier supply continues to lag behind due to limited capacity. The group says it intends to leverage on the demand-supply gap and its own research and development capabilities to capture a larger market share in the sector.
“This is a new chapter for the group with our maiden GTT Mark III LNG carrier contract win. 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,” says Ren Letian, executive chairman and CEO of the group.
“As one of the global leaders in the shipbuilding industry, Yangzijiang has a vital role to play in transitioning the shipping industry into greener vessels. Our recent contract win demonstrates our 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 continues.
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“In conclusion, over these relatively volatile times, the team has shown its agility and resilience in delivering stable and sustainable returns through various cycles. I am grateful to the team for their diligence and hunger for growth as we take Yangzijiang to new heights. We are committed to working harder and aspire to be one of the best shipyards in the world.”
Shares in Yangzijiang Shipbuilding closed 3 cents lower or 2.46% down at $1.19 on Oct 25.
