Chinese gas carrier owner CYH Shipping has been linked to an order for up to six very large gas carriers (VLGCs) at Jiangnan Shipyard, marking its first major newbuilding move in the large gas carrier sector, according to shipbuilding sources cited by Splash247.
Deal details
The Hong Kong-based company is reported to have signed for four firm 90,000 cu m units at the Shanghai yard, with options for two more vessels. The firm ships are expected to deliver in 2030. No price has been disclosed, and neither CYH nor Jiangnan has publicly announced the deal, Splash247 reported.
| Order component | Number of vessels | Capacity | Delivery year |
|---|---|---|---|
| Firm units | 4 | 90,000 cu m each | 2030 |
| Options | 2 | 90,000 cu m each | Not specified |
CYH's strategic shift
If confirmed, the order would mark CYH’s first major newbuilding move in the large gas carrier sector and extend a rapid shift towards LPG shipping, according to Splash247. The company picked up two secondhand VLGCs earlier this year after exiting tanker ownership late last year through the sale of its 2010-built LR2. CYH’s website describes the company as focused on gas transportation, with a strategy built around owning and operating vessels for LPG trades. The reported Jiangnan order would move the company from secondhand acquisitions into newbuildings and give it exposure to one of China’s most established gas carrier builders.
Jiangnan's gas carrier expertise
Jiangnan Shipyard has built a strong position in the VLGC segment in recent years, which has since also expanded into larger ammonia, ethane and LNG carriers, Splash247 noted. Earlier this month, ADNOC Logistics & Services returned to Jiangnan for four 175,000 cu m LNG carriers in a deal worth about $900 million, with delivery scheduled in 2029. The CYH order, if firmed, would add another Chinese private owner to a VLGC newbuilding market that has seen a busy run of contracting this year.
Implications for the VLGC market
For ocean carriers and logistics operators monitoring the LPG trade, the potential order signals growing confidence in gas carrier demand. CYH's move from secondhand tonnage to newbuilds suggests a long-term commitment to the sector. With Jiangnan also securing LNG carrier orders, the yard's capacity for gas carriers may become a strategic asset. Shippers of LPG and ammonia could benefit from increased tonnage availability later this decade, though no rate impact is immediate.
Watch list
- Confirmation of the CYH order and any disclosed price terms.
- Additional Chinese private owner orders in the VLGC segment.
- Jiangnan's orderbook capacity for further gas carriers.
- ADNOC L&S's LNG carrier deliveries starting 2029.
- CYH's fleet expansion trajectory in LPG shipping.
Sources:
