Chinese shipbuilders move into LNG sector

More Chinese shipbuilders are moving into the LNG carrier construction arena, with China Merchants Heavy Industry Jiangsu (CMHI Jiangsu) sealing a technical assistance and license agreement with French membrane containment system designer GTT.

The deal will allow the subsidiary of China Merchants Industry Holdings, and one of the three leading shipbuilding groups in China, to build large-capacity LNG carriers using GTT membrane technologies.

GTT and China Merchant Industry Holdings have been cooperating for a decade, with a first technical service agreement signed in 2013 for the maintenance and repair of LNG carriers, which also led to a cooperation agreement in 2016 for the evaluation of CMHI to implement GTT technologies.

The news follows several other Chinese yards entering the space currently dominated by Korean shipbuilders. Joining the country’s top LNG carrier builder, Hudong-Zhonghua Shipbuilding, privately-owned Yangzijiang Shipbuilding recently landed a deal with GTT, paving the way for its entry into the LNG carrier sector. Jiangnan Shipyard and Dalian Shipbuilding Industries Co also secured debut large LNG carrier orders this year for five and two ships, respectively.