Yangzijiang yard bags first LNG order

Chinese shipbuilder Yangzijiang Shipbuilding has marked its entry into the LNG sector, landing a contract from an undisclosed European customer for two 175,000 cu m ships.

The Singapore-listed company said the units will be equipped with GTT Mark III Flex membrane tanks and delivered between 2025 and 2026.

No price has been revealed, but market sources estimate a price tag of $230m per unit – “a 5 to 10% discount to the most recent Korean quotes likely fair given lack of experience for the yard and its location,” Pareto Securities said in its report on Wednesday.

Yangzijiang is one of the largest private shipbuilders in China with yards in Jiangsu Province, along the Yangtze River. Earlier this month, the company disclosed that it had secured contracts for 22 newbuild, worth around $2.5bn. The orders are made up of twelve LNG dual-fuel 16,000 teu containerships, linked to Soren Toft-led Mediterranean Shipping Company (MSC) and ten bulk carriers, consisting of four 32,000 dwt and six 66,000 dwt units.

With these latest wins, year-to-date, the company has secured new orders for more than 40 vessels lifting its orderbook to close to $11bn.