Nantong CIMC SinoPacific Offshore & Engineering Co., Ltd. (“SOE”), a subsidiary of the Company, has signed a contract to construct two 40,000 cubic meters LPG/ammonia carriers and two optional ship orders of the same type for Avance Gas Holding Ltd (“Avance Gas”). The contract price in effect amounts to nearly 900 million RMB.
Avance Gas is one of the world's leading owners and operators of liquefied gas carriers, and the order for 2+2 mid-sized liquefied gas carriers (MGC) marks a breakthrough for SOE as it represents its first order for Type A cargo tank gas carriers. This achievement signifies a remarkable advancement in SOE’s design and construction capabilities for small and mid-sized gas carriers. As a new-generation MGC carrier, it will be equipped with three IMO Type A cargo tanks, optimizing cargo capacity and improving the carrier’s economic performance, and also with high-pressure LPG dual-fuel engines, effectively reducing operational pollution and greenhouse gas emissions.
These MGC are fully able to transport various liquefied gas cargoes, such as LPG, liquid ammonia, and vinyl chloride monomer (VCM), effectively meeting the demand for reloading and shipping different cargoes. As a zero-carbon energy and an essential storage and transportation component of hydrogen, ammonia is projected to experience continuous growth in production and trade volume. Statista predicts that global ammonia trade volume will reach approximately 240 million tons by 2050, a remarkable 13-fold increase compared to 2021, with 70% of that being green or blue ammonia. The specifications and size of the MGC obtained this time align perfectly with the ammonia batch trading and transportation requirements. Thus this carrier type may become a future backbone in the zero-carbon energy transportation sector.
Schematic diagram of Type A cargo tank MGC
Driven by tightening shipping replacement cycles and environmental emission requirements, the liquefied gas carrier market has witnessed a gradual upswing over the past two years. Consequently, the shipbuilding industry is experiencing a prolonged period of high prosperity with steady increases in new ship prices. The Clarksons Newbuilding Price Index reached 170.40 points as of 2 June, marking the 19th consecutive week of growth and an 11% rise since the beginning of 2022, reaching the highest level since January 2019.
With 15 years of specialization in the liquefied gas carrier sector, SOE possesses independent expertise in the design, construction and project management of marine liquid tanks, fuel tanks and complete vessels. It has successfully delivered over 40 series of various types of liquefied gas carriers, including the world’s largest 20,000 cubic meter LNG carrier & bunkering vessel and the world’s first 5,000 cubic meter dual-fuel fully pressurized LPG carrier. Its global market share ranks among the top in the industry. As a leading enterprise in the sub-market of liquefied gas carriers of 40,000 cubic meters or less, SOE has recently secured a series of orders, including a series of over 1 billion RMB orders for ship-mounted LNG fuel tanks and an over 1 billion RMB order for 2+2 1,450 TEU LNG dual-fuel container vessels.
Mr. Gao Wenbao, Vice President of CIMC Enric and General Manager of SOE, commented, “SOE continues to enhance the construction capabilities for full spectrum of mid-sized liquefied gas carriers. And our current product portfolio has encompassed various types, including LPG, ethane, ethylene, LNG, and ammonia carriers. The recent MGC order represents breakthroughs in vessel design, construction and cargo capacity, successfully supplementing the blank of SOE’s Type A cargo tank carrier product line. In the future, we will continue to augment our products and services, providing our valued customers with integrated liquefied gas transportation solutions that are energy-efficient, environmentally friendly and technologically innovative.”
