China's Chengxi Shipyard is exploring a new line of business with a deal to build a high-specification LPG carrier for Kumiai Senpaku.

The Japanese shipowner is a previous customer at Chengxi but not for gas tonnage. If the deal for the small dual-fuel vessel is concluded, the ship will be Chengxi's first gas carrier and LPG-fuelled ship.

The yard considers the plan to be a significant but worthwhile investment.

"You know we would never build just one," said a shipyard source who did not wish to be identified.

New investment in gas

TradeWinds recently reported that the Tokyo-based owner had signed up for a 5,000-cbm dual-fuel vessel with an unnamed shipyard. No price has been disclosed.

Kumiai Senpaku chief operating officer Rajeeva Krishna previously said the ship with dual-fuel four-stroke propulsion and SMARTShip technology would be delivered in early 2022.

Chengxi officials declined to comment on the deal, saying the discussions are sensitive.

Newbuilding sources told TradeWinds that no letter of intent has been signed yet but one is expected within the next two months.

The China State Shipbuilding Corp (CSSC) member yard has never built an LPG carrier before and will have to invest in new equipment and engineering staff to enter the specialised field.

"If an agreement is reached, this will be Chengxi's first," a source close to the yard said.

Canada-flag standards

Meanwhile, Chengxi has also won an order from CSL for one firm 26,000-dwt self-unloading bulker and an optional second vessel.

Chengxi officials declined to disclose a price on the ships, which are set to deliver from 2022. The pair are being built to the environmental standards of the Canadian flag and will include hybrid scrubbers, a yard official said.

Chengxi has built self-unloaders for all the main players in that specialised trade, most recently including two 21,500-dwt transshipment units with Azipod propulsion for Oldendorff Carriers and an ongoing series of two 40,000-dwt ships for CSL in a joint venture with German owner Hans-Jurgen Hartmann.