China's CSSC Huangpu Wenchong Shipbuilding has won its first gas carrier order.
Shipowner Tianjin Southwest Maritime (TSM) has booked a 9,500-cbm multipurpose gas carrier at the state-owned yard. It is unclear if the deal includes options for additional vessels.
The order marks a rare move by a yard that is best known as a containership building specialist.
Shipbuilding sources familiar with the deal said TSM has been planning to order gas carrier newbuildings for some time and has approached several yards.
Competitive price
They believe it chose Huangpu Wenchong because of price competitiveness, but it is not known how much TSM is paying for the multigas ship. The company is slated to take delivery of the vessel in late 2021.
A shipbuilding source said the gas carrier's type C tank can hold LNG, ethylene and LPG.
“This is the first gas carrier contract for the shipyard and we do not think it will be making much profit from the order,” he said.
However, Guangzhou-based TSM has worked with Huangpu Wenchong before. Four years ago, it contracted the yard to build two 12,800-dwt asphalt and bitumen carriers. The Da Ming Shan and Da Hua Shan were delivered in 2016.
Huangpu Wenchong is also due to deliver a single 17,000-dwt asphalt and bitumen tanker to TSM some time this year. The contract was placed three years ago.
Early this year, TSM commissioned Jiangnan Shipyard to build an 86,000-cbm gas tanker for delivery during the second half of 2021. The deal includes an option for a second vessel.
Wideshine subsidiary
TSM is the shipping arm of Wideshine Enterprises, part of the Wideshine Group. The conglomerate's commercial interests include stainless-steel kettle manufacturing, warehousing and distribution.
It made its debut into the VLGC segment in the middle of 2013 by acquiring the 78,000-cbm Gas Crystal (ex-Reference Point, built 1991) from Petredec for $22.3m.
According to VesselsValue, TSM’s fleet comprises 17 gas carriers and seven tankers, including five VLGCs, 11 fully pressurised gas carriers and a 22,000-cbm semi-refrigerated gas ship.
Huangpu Wenchong is one of several yards under the umbrella of China State Shipbuilding Co (CSSC). The yard has a backlog of 64 newbuildings, with feeder containerships making up most of the orders. It is also constructing a sextet of 120,000-dwt bulkers for CSSC Leasing.
Companies that have boxships under construction at the yard include Seacon Ships Management, Eimskip, China Navigation, Cape Shipping and Wan Hai Lines.
