Chinese yards to get US$10b in LNG tanker orders
Push aims at reviving ailing industry and boosting domestic fleet delivering gas supplies
Chinese shipyards are aiming to take US$10 billion in orders for gas tankers over the rest of the decade, part of a plan to restructure the country's ailing shipbuilding sector and secure China's energy supply chain.
The push to build its own natural gas delivery vessels will boost China's capability in high-technology ships and pose a challenge to South Korean and Japanese shipyards that have been the main suppliers of large gas tankers for 30 years.
Up to 50 liquefied natural gas tankers, or more than 20 per cent of the 225 LNG vessels expected to be added worldwide by the end of 2020, are set to be built in China to deliver gas to its ports, according to estimates from ship safety agency American Bureau of Shipping.
Relying on home-built vessels for gas deliveries - which China needs to serve new import terminals - gives it greater control over its supply chain and snags a bigger share of the high-value end of the shipbuilding business.
"Regardless of the availability in the market for LNG carriers, China will ship the bulk of its cargoes through its own project dedicated vessels," said Andrew Bridson, a business development manager at transport and energy consultant BMT Asia-Pacific.
The global shipping industry is emerging from a five-year downturn, the worst in 30 years, and China - the largest shipbuilding nation and long the leader in basic vessels - sees a growth opportunity in developing the skills and technology to build more sophisticated ships.