DSIC signs LNG carrier construction agreement with Chinese joint venture

China’s Dalian Shipbuilding Industry Corporation (DSIC) has officially signed an agreement to build two 175,000 cubic meter LNG carriers for a joint venture formed by China Gas, Huaguang Shipping and CSSC Shipping.

DSIC and the three companies signed the agreement on April 26, according to a statement from the shipyard.

The joint venture is Hai Jade Investment Company.

LNG Prime first reported in January that the three companies were expected to order two more LNG carriers from DSIC this year, citing shipbuilding industry sources.

The first joint venture, Haifei Investment, ordered two 175,000-cubic-meter LNG carriers from Dalian Shipbuilding Industry in August last year, which are expected to be delivered in 2027.

In addition, the first two vessels will be equipped with WinGD dual-fuel low-speed engines equipped with integrated ICER systems, reliquefaction units and GTT’s Mark III Flex membrane sealing system.

DSIC said the two new ships will also use the same technology.

DSIC did not provide any other information about the order.

Through this contract, DSIC has now ordered 15 LNG carriers with a capacity of 175,000 cubic meters.

In June last year, DSIC started the construction of the first eight 175,000-cubic-meter LNG carriers for China Merchants Energy Shipping Company (CMES), a subsidiary of China Merchants Group.

As early as March 2022, China Merchants Energy Shipping ordered two dual-fuel LNG carriers, which was DSIC’s first large-scale LNG carrier order, and six more ships have been added since then.

In addition to these orders, DSIC will build three LNG carriers for a joint venture formed by COSCO Shipping Energy Shipping and Sinopec.

China gas charter flight

Last month, Hong Kong-based natural gas operator and distributor China Gas said its subsidiary China City Gas had signed joint venture agreements with Huaguang Marine’s Summit Energy and CSSC (Hong Kong) Shipping’s Fortune Clean Energy.

China City Gas holds a 30% stake in the joint venture, Summit Energy holds a 45% stake, and Fulin Clean Energy holds a 25% stake.

According to China Gas, the Haijing Investment joint venture will set up two wholly-owned special purpose vehicles to acquire and own each LNG ship.

China Gas said at the time that its subsidiary expected to invest US$142.8 million in the new company.

Based on a 30% share, this could mean a value of just over $235 million per LNG carrier.

China Gas said that after delivery, the joint venture’s two new LNG carriers will also serve China Gas Hongda Energy trading services under a 20-year charter agreement.

The company said charter charter rates for each LNG carrier would be about $87,000 to $100,000 per month.

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