Shanghai port operator signs newbuilding contract for LNG bunker vessel

In the latest development, on 18 June, Shanghai International Port Group (SIPG) signed a contract with Jiangnan Shipyard, a subsidiary of China State Shipbuilding Corp, for the construction of a 20,000-m³ vessel.

Scheduled for delivery in 2027, the vessel is intended to support China’s national strategy to develop “world-class smart ports and green ports,” according to both parties. The vessel will feature advanced energy-saving systems, which are expected to reduce greenhouse gas emissions by approximately 25%, according to the official disclosure.

SIPG’s 2024 annual report noted the company was operating two LNG bunker vessels and one methanol bunker vessel at the time, with plans to add one more vessel to each segment in the near future.

The report also emphasised SIPG’s growing LNG bunkering activity. By the end of that year, it had completed 125 bonded LNG bunkering operations for international vessels. “LNG bunkering services are becoming regular at the port, with annual volume expected to reach 450,000-m³ in 2024 – an increase of more than 70%,” the report noted. The company aims to boost its LNG bunkering capacity to 1M-m³ by 2030.

SIPG operates the public terminals at the Port of Shanghai, the world’s busiest container port.

Newbuilding momentum

LNG bunker vessel orders have notably outpaced LNG carrier contracts so far this year, according to shipbroking and market sources.

Among the latest transactions, Evalend Shipping, led by Kriton Lendoudis, and Spanish shipowner Ibaizabal have been linked to new orders placed at South Korea’s HD Hyundai Mipo shipyard. Meanwhile, Belgium-based Somtrans is reported to have signed a one-plus-one contract with China’s Nantong CIMC Pacific Offshore Engineering.

“We anticipate that the coming years will be particularly dynamic, as additional LNG bunker vessels will be required to meet growing demand from LNG-fuelled ships,” said BRS Shipbrokers in its annual review.