The country’s shipyards reportedly secured 30% of all new commissions this year
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China’s shipyards secured nearly $10 billion worth of orders for the construction of liquefied natural gas (LNG) carriers this year, Reuters reported on Monday, citing figures from shipping data provider Clarksons Research.
According to the report, Chinese LNG tanker contracts have tripled so far this year to 45 orders, for a total of 66 vessels as of late November. This brings China’s share to 30% of global LNG carrier-building contracts against only 9% last year. The bookings are worth an estimated $9.8 billion, which is around one fifth of this year’s total LNG tanker order value.
The report notes that this year has been marked by record high demand for new LNG tankers, with the global total of 163 orders worth nearly $60 billion. The surge in demand comes as EU countries seek to replace their Russian pipeline gas imports, which have been dwindling due to sanctions and attempts to move away from Russian energy.
Analysts have pointed to South Korea’s inability to take new orders to explain the surge in Chinese commissions.
Seoul is traditionally considered the largest manufacturer of LNG carriers, having made about two thirds of the global LNG tanker fleet. However, its shipyards have been fully booked this year by commissions from the globe’s top exporter of the fuel, Qatar, which needs the vessels for its ambitious North Field expansion project.
The report notes Chinese shipyards received the majority of orders from domestic buyers, but also attracted 19 overseas commissions.
Analysts expect the rush for new LNG vessels to help expand China’s shipbuilding industry.
“As more Chinese gas traders engage local shipyards, they will be forced to climb the learning curve and eventually grow the whole industry,” Li Yao, founder of consultancy SIA Energy, told Reuters.
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