China’s Tianjin Southwest Maritime (TSM) is said to have ordered up to two very large ethane carrier (VLEC) newbuildings at a domestic yard worth $260m.
According to shipbuilding sources, the Guangzhou-based shipowner has returned to Jiangnan Shipyard for the VLECs.
The company has contracted the state-owned yard to build one 99,000-cbm vessel for delivery in 2025. The deal includes an option for an additional ship.
It is not known if TSM has ordered the ethane newbuildings on speculation or against charter contracts.
Officials at Jiangnan declined to comment on the shipyard’s newbuilding activities, citing contract confidentiality, while TSM said it does not comment on market rumours.
TSM’s latest newbuilding deal at Jiangnan brings its tally of VLECs on order at the yard to three. The company’s earlier two newbuildings were inked two years ago.
Sources said TSM is paying Jiangnan around $130m for the single VLEC — about 18% more than the earlier two vessels that were reported to cost slightly less than $110m apiece.
Rising shipbuilding materials and labour costs were cited for the price hike.
TSM will be taking delivery of its first VLEC newbuilding — to be named Gas Bluebonnet from Jiangnan soon. Its second vessel — to be named Gas Magnolia — is slated to be delivered at the end of this year.
TSM had ordered the duo on the back of a 15-year long-term charter contract with Chinese acrylic acid and acrylates manufacturer Zhejiang Satellite Petrochemical. The charter deal was reported to be worth $500m.
Shipbuilding sources said besides the VLECs at Jiangnan, TSM also has one dual-fuelled 93,000-cbm VLGC newbuilding under construction at the shipyard. The gas ship was ordered in February of last year at between $75m and $76m. Jiangnan is slated to deliver the LPG carrier in August 2023.
Clarksons’ Shipping Intelligence Network (SIN) shows TSM also has five gas ships — one 9,500-cbm multipurpose gas carrier and four 5,000-cbm LPG vessels — under construction at Huangpu Wenchong Shipbuilding. It is slated to take delivery between 2023 and 2024.
TSM is the shipping arm of Wideshine Enterprises, which is part of Wideshine Group. Sister company Sinogas Management is the commercial operator of its VLGCs.
SIN lists TSM with a fleet of 30 vessels that includes seven VLGCs that were built between 2016 and 2021, and seven asphalt/bitumen carriers.
One of China State Shipbuilding Corp yards, Jiangnan was established in 1867 and is the oldest shipyard in China. The Shanghai-based shipbuilder was the country’s first yard to break into the gas carrier sector, winning a domestic order to build a 3,000-cbm pressurised LPG carrier in the late 1980s.
Jiangnan made its debut in the LNG carrier sector early this year, when it inked two 175,000-cbm newbuildings with Adnoc Logistics & Services. The Middle Eastern shipowner added three more newbuildings in May, lifting the order tally there to five.
