Small-scale joint venture shipowner Avenir LNG has agreed to sell all or part of one of its two under-construction 20,000-cbm vessels to Shanghai International Port Group (SPIG) to supply bunkers for large container ships and other vessels.
LNG market sources said the 20,000-cbm Avenir Allegiance, the first of two LNG carriers of this size contracted at CIMC Sinopacific Offshore & Engineering in China, will be used by the Chinese ports group to supply LNG as bunkers to French liner giant CMA CGM's new LNG dual-fuelled container ship fleet.
They said the small-scale LNG carrier will be operated by Pacific Gas, the gas carrier arm of Shandong Shipping.
Chinese ports first
On Thursday, Chinese media reports said SPIG has entered a 10-year contract with CMA CGM on an LNG bunkering service.
The Chinese reports said a 20,000-cbm LNG bunker vessel will be used to provide the fuel to CMA CGM's 15,000-teu vessels.
This is the first time that a Chinese port and SPIG have worked in the LNG bunkering supply sector.
The supply of the LNG will be at Yangshan Port.
Kpler data tracking shows the Avenir Allegiance visited the port in early January.
Consultants working in the LNG bunkering sphere have said China is increasingly being seen as a destination for LNG bunkering by companies that have contracted dual-fuel newbuildings.
Pricing interest
Details of the purchase price and whether Avenir is retaining any stake in the vessel have yet to emerge and are prompting speculation in LNG circles.
Small-scale LNG market players said the ship was contracted at just under $60m but would now likely cost in the region of $65m if ordered today.
Avenir, which TradeWinds reported last month as having secured business for its three open LNG newbuildings, has been contacted about the sale of all or part of its vessel.
On 22 December Avenir confirmed that energy major Shell had snapped up the first of Avenir's two 20,000-cbm newbuildings, the under-construction Avenir Achievement, to work as an LNG bunker vessel.
At the time, this publication linked the 20,000-cbm sistership Avenir Allegiance to a Chinese project in Shanghai.
Separately, a large LNG trader is said to have snapped up the company's remaining 7,500-cbm ship, the Avenir Ascension, leaving Avenir with no open vessels in its six-ship fleet.
Avenir is a joint venture among Golar LNG, Hoegh LNG and Stolt-Nielsen and was formed in 2018.
| Ship | Size (cbm) | Delivery | Yard | Charterer |
| Avenir Advantage | 7,500 | 2020 | Keppel Nantong | Petronas* |
| Avenir Accolade | 7,500 | 2021 | Keppel Nantong | New Fortress Energy |
| Avenir Aspiration | 7,500 | 2021 | CIMC Sinopacific | Avenir LNG |
| Avenir Allegiance | 20,000 | 2021 | CIMC Sinopacific | Shanghai SIPG Energy Service Co (SSES) |
| Avenir Ascension | 7,500 | 2022 | CIMC Sinopacific | Avenir LNG |
| Avenir Achievement | 20,000 | 2022 | CIMC Sinopacific | New Fortress/Shell |
*Ship is time-chartered from Future Horizons, a 50:50 MISC-Avenir LNG joint venture
