Yangzijiang Shipbuilding (Holdings) has recently signed agreements for the building and delivery of 10 units of dual-fuel 7,000TEU containerships and two units of 50,000DWT MR tankers for a total contract value of US$1.08 billion ($1.46 billion).
In addition, the group signed a letter of intent (LOI) for another five units of dual-fuel 7,000TEU containerships in July. The LOI is expected to turn effective in August.
Orders for 15 units of dual-fuel 7,000TEU containerships were placed by Yangzijiang’s repeat customer, Seaspan Corporation. They will be delivered progressively between 2023 to 2024.
The containerships will be fitted with Type ‘B’ LNG Fuel Tank, where Yangzijiang took part in the design of the LNG fuel storage.
The orders mark an accomplishment for the group and represents the shipowner’s recognition in the capabilities and technology towards the LNG tanks jointly designed by the group.
Yangzijiang’s clinching of the orders for these dual-fuel containerships also signified the end of a monopoly for LNG dual-fuel engine vessels previously dominated largely by the Korean shipyards, says the group.
To date, Yangzijiang’s existing orderbook of US$8.74 billion remains a record-high in the group’s history.
The group says it remains confident in securing more order wins amid continued favourable market sentiments.
The Mainboard-listed group, on June 23, announced its largest order wins as well as a record-high outstanding orderbook.
“The clinching of contract for LNG dual-fueled vessels… is a history-making moment for the Group. This momentous achievement has placed Yangzijiang amongst the playing field of other shipyards that were known to enjoy monopoly over the construction of dual-fuel engine vessels, and this was only possible through our continuous R&D efforts,” says Ren Letian, executive chairman and CEO of the group.
“These engines and vessels are in compliant with and even exceed the already underway regulations including Energy Efficiency Design Index (EEDI) "Phase 3" initiated by the IMO. As the shipping industry move towards sustainable development and pivots to carbon-neutrality, we are confident that more shipowners will opt for such vessels to ensure functionality and relevance of new built vessels and we are optimistic in clinching more of such orders,” he adds.
Shares in Yangzijiang closed 1 cent lower or 0.7% down at $1.37 on July 30.
