Chinese shipyards aim to deliver a record number of LNG carriers this year

Chinese shipyards plan to deliver a record number of liquefied natural gas (LNG) carriers this year. Strong demand for the fuel enabled them to more than double their revenues in the first five months of the year, even as the rest of the industry faces falling profits and struggles with higher US tariffs and persistent deflationary pressure. Bloomberg reported.

China’s largest shipyard, Hudong-Zhonghua, plans to deliver ten carriers by the end of the year, making a significant contribution to a national record. It also has orders for 60 more vessels worth 150 billion yuan (CZK 439 billion), which are due to be delivered by 2031, according to Chinese state broadcaster CCTV.

China is benefiting from growing global demand for LNG. Liquefied natural gas is the fastest-growing fossil fuel, driven in particular by rising production in the United States and Qatar. Chinese importers are also seeking to build their own fleets to strengthen their bargaining power in the market. But the rapid growth is also sparking disputes. The US government, for example, has concluded that Chinese subsidies unfairly benefit shipyards there and harm their US competitors.

Last year, the number of newly delivered LNG carriers increased by more than 60 percent to 67, according to the International Group of LNG Importers. The global fleet grew to 831 vessels, with another 103 due for delivery this year. Outstanding orders now account for almost half of the fleet’s existing capacity.

Chinese manufacturers have cut LNG carrier production times in half, to 15 months, CCTV reported. This is partly because domestic suppliers provide 80 percent of the required parts and services.

Once all current orders are completed, China will account for 15 percent of the global LNG carrier fleet, more than double its current share, BloombergNEF estimates. Even so, it will remain far behind South Korea, the world’s leading shipbuilder.