LNG newbuild prices hit US$250M as Chinese yards scoop up orders

One of the advantages shipowners have in going to newcomers to the LNG newbuilding arena is earlier deliveries, but those shipowners should also be prepared for growing pains and steep learning curves.

“One advantage is relatively early deliveries over competitor yards, but the new builders will probably have to deal with start-up problems,” said BRL. The two German shipowners entering LNG for the first time are Hammonia Reederei and Peter Dohle, “both well-established shipowners operating other vessel categories,” noted BRL.

China’s Jiangnan Shipbuilding, which has been involved for around three years in the LNG business, secured an order for two 171,320-m³ LNG newbuildings from Shandong Shipping, making its debut in LNG shipping. Shandong holds options for two more ships for delivery H2 2027. “A per ship price of US$197M applies, although this does seem a little low unless there is some favour for the owner,” said BRL.

Long-term charters for these vessels are committed to China’s Sinopec.

“The most talked about order” for the week was secured by China’s Dalian Shipbuilding Industry, according to BRL. The shipbuilder now holds orders for 10 LNG carriers but has yet to complete a ship. The latest order marks a joint venture between Mitsui OSK Lines and China’s Cosco Shipping LNG Investment with probable long-term charter to Sinopec. All three vessels are 175,000 m³ and will deliver in 2026 and 2027 with a cost of US$230M apiece. The joint venture holds an option for two more LNG newbuilds.

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