China’s Tianjin Southwest Maritime (TSM) continues to expand its gas carrier fleet with the company returning to Jiangnan Shipyard for more very large gas carrier (VLGC) newbuildings.
Guangzhou-based TSM has contracted Jiangnan to construct one 86,000-cbm gas tanker for delivery during the second half of 2021. The deal includes one option.
A shipyard executive confirmed TSM’s newbuilding order but declined to disclose the cost of the gas tankers.
However, he said the 86,000-cbm newbuilding represents the latest version of Jiangnan’s VLGC design.
The dual-fuel vessel will be compliant with IMO Tier III NOx/SOx regulations and the latest International Gas Code (IGC) for carrying liquefied gasses in bulk.
TSM is the shipping arm of Wideshine Enterprise, part of the Wideshine Group. The parent company has investments in five different businesses and has more than 10 subsidiaries.
Its 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.
It co-owns the ship with Chinese LPG importer and distributor Jovo Group. In August, it sold the vessel for $418 per ldt, or $6.9m. It has been renamed Gas Stal.
TSM made its first gas carrier newbuildings contract six years ago when it commissioned Jiangnan to construct two 83,000-cbm vessels for 2016 delivery. A few months after it added another vessel. The company was reported to have paid slightly less than $70m each for ship.
In July 2014, TSM once again contracted Jiangnan to construct two more VLGCs. The 84,000-dwt newbuildings were reported to cost in excess of $70m each. Jiangnan delivered the duo – Gas Scorpio and Gas Libra - last year.
In August, TSM was reported to have purchased the Mitsubishi Heavy Industries-built, 78,000-cbm G Commander (built 1995) for $8.5m, renaming it Gas Sapphire.
The vessel was scheduled for a special survey in October. The ship is not yet listed in TSM fleet.
State-owned Jiangnan has built up a reputation as a leading gas-tanker builder. The China State Shipbuilding Corp (SCCS) controlled shipyard is the first shipbuilding company in China to break into the gas sector in the late 1980s, with a contract from a domestic owner to build a 3,000-cbm fully pressurised vessel.
Jiangnan set its eyes on the VLGC sector as early as 1997 coming up with its first design for a 78,000-cbm unit.
It took the shipyard another five years before its landed it first-ever VLGC newbuilding contract.
Its break-through was a eight-ship deal from John Fredriksen’s Frontline 2012 for delivery from the fourth quarter of 2014 into 2015.
TSM’s newbuildings are the third VLGC order contract that Jiangnan has won in the last year.
Chinese owner Oriental Energy, also known as Donghua Energy has placed an order for two 84,000-cbm carriers while Fortune Oil, a Hong Kong-based energy company, has signed up for two similar size vessels at a reported price of around $68m a piece. Jiangnan is slated to deliver the vessels in 2020.
Clarkson’s Shipping Intelligence Network (SIN) lists TSM with a fleet of 26 vessels that include five VLGCs, one 22,000-cbm LPG ship, 13 gas carriers of less than 10,000-cbm and seven bitumen carriers.
It also has one 17,000-dwt bitumen carrier newbuilding under construction at Huangpu Wenchong Shipyard that is scheduled for delivery this year.
