Following the signing of Yangzi Hongyuan Green High-tech Clean Energy Shipbuilding Base Project and the undertaking of 13,000 TEU methanol dual-fuel powered containerships, China’s largest private shipbuilding enterprise, Yangzijiang Shipbuilding Group, welcomed another important breakthrough.
On July 22, Nissen Kaiun, a diversified Japanese shipowner, announced on its official website that it has signed a contract for the construction of four 88,000 m³ Very Large Liquid Ammonia Carriers (VLACs) with Yangzi Mitsui Shipbuilding, a joint-venture shipyard of Yangzijiang Shipbuilding. The new VLACs, powered by liquefied petroleum gas (LPG) dual fuel, are expected to be delivered between the second quarter of 2028 and the first quarter of 2029. They will then be operated by Dubai-based energy trader BGN.
As shipowners and shipyards have not yet revealed the price of the order, as a reference, the South Korean shipbuilder HD Korea Shipbuilding & Offshore Engineering (HD KSOE) announced on July 4 that the cost of a single VLAC is about $119 million, if this is estimated, the total value of the order for Yangzi Mitsui Shipbuilding’s four VLACs is about $476 million (about RMB 3.462 billion).
Nissen Kaiun said that this newbuilding contract is a major step for it in the maritime industry and will further expand its fleet. Nissen Kaiun has a large and diversified fleet of about 200 vessels of various types, including gas carriers, oil and chemical tankers, bulk carriers and container ships, with nearly 40 new vessels ordered. Nissen Kaiun attaches great importance to fleet renewal, and the company has a total of 96 vessels of 0-5 years of age, accounting for 56.1% of the total, while there are only two vessels of 20 years of age or older.
It is worth noting that this is the first VLAC order since the establishment of Yangzijiang Shipbuilding, marking that Yangzijiang Shipbuilding has become the second shipyard in China and the first private shipyard in China to undertake VLAC orders. As the “leader” of private shipbuilding enterprises, Yangzijiang Shipbuilding has once again achieved a major breakthrough, which also means that the global competitiveness of China’s shipbuilding industry in the VLAC market segment has been further strengthened. On May 6, 2023, Jiangnan Shipbuilding, a subsidiary of China State Shipbuilding Corporation (CSSC), undertook four 93,000 m³ VLACs from Singapore’s East Pacific Line, becoming the first Chinese shipyard to receive an order for VLACs.
Yangzijiang Shipbuilding invested heavily in building world-class shipyard
In recent years, Yangzijiang Shipbuilding has been committed to expanding its shipbuilding sector and has sought to expand its portfolio into the high value-added liquefied natural gas (LNG) vessel market such as large LPG carriers and ethane carriers.
In 2022, Yangzijiang Shipbuilding made its first foray into the liquefied natural gas (LNG) carrier sector and announced the signing of two 175,000 m3 LNG carriers with a European shipowner on October 26, 2022, marking Yangzijiang Shipbuilding as the fourth shipyard in China, and the first private one in China, to receive orders for large-scale LNG carriers, and the two vessels are now under construction at Yangzi Xinfu shipbuilding.
In May 2024, Yangzijiang Shipbuilding entered the VLEC construction field with three 100,000m3 very large ethane carriers (VLECs) ordered by Singapore shipping company SP Chemicals. This is not only the first VLEC order received by a Chinese shipyard this year, but also marks that Yangzijiang Shipbuilding will be the first private shipbuilding enterprise to enter the VLEC construction market in China. The three new VLECs will also be constructed by Yangzi Xinfu.
In order to accelerate the development strategy of LPG carriers and create a world-class demonstration area for the high-quality development of clean energy gas carriers, Yangzijiang Shipbuilding announced on July 15 that it has signed an agreement with Xinqiao Town (Xinqiao Park) of Jingjiang to invest about RMB 3 billion in the construction of the Yangzi Hongyuan Green High-tech Clean Energy Shipbuilding Base, so as to consolidate its leading position in the field of high-end shipbuilding.
It is reported that Yangzi Hongyuan Green High-tech Clean Energy Shipbuilding Base project will utilize the shoreline length of about 1,320 meters, covering an area of about 1,300 mu, and build a 300,000-ton shipyard, a 200,000-ton outfitting wharf, and a 100,000-ton harbor pool, with an annual production capacity of about 800,000 DWT. At present, the project’s preliminary procedures are being fully promoted, the next two years is expected to invest RMB 3 billion, completed and put into operation at the end of 2026, the annual output value of the project is not less than 10 billion yuan, the average annual comprehensive taxes and fees of not less than RMB 300 million.
As the only private enterprise in China that has taken orders for 175,000 m³ very large LNG carriers, Yangzijiang Shipbuilding Group is building a green and high-tech clean energy shipbuilding project, aiming to create a world-class demonstration area for the high-quality development of clean energy gas carriers. It will also implement a modern shipbuilding model and build a modern intelligent factory in accordance with the planning concepts of intelligence and digitalization.
The enterprise will introduce intelligent and digital production lines, accelerate the integration and application of 5G industrial internet and other technologies with shipbuilding, and cultivate new quality productivity in the shipbuilding industry through digital, networked and intelligent upgrading.
In addition to LNG carriers, Yangzijiang Shipbuilding is also working hard to deepen its commitment to clean fuel-powered vessels. in June 2023, Yangzijiang Shipbuilding formally entered the methanol-powered containership construction market by signing a contract with Danish shipping giant Maersk for the construction of six 9,000 TEU methanol dual-fuel-powered container ships. Last week, Japan’s Ocean Network Associated Shipping (ONE) announced an order for 10 additional 13,000 TEU methanol dual-fuel-powered containerships, with Yangzijiang Shipbuilding constructing 5 of them, which are expected to be delivered from 2027 to 2028.
