Chinese National Offshore Oil Corp (CNOOC) has emerged in the market for three LNG carrier newbuildings.
Industry sources said the Chinese energy company has invited at least 10 shipowners to submit offers. Companies in China and Japan are believed to be in the mix.
They detailed that CNOOC has specified vessels with X-DF propulsion systems that will be built in China.
CNOOC is understood to be offering long-term charters of 10 years and more on the newbuildings.
The country’s main LNG shipbuilder, Hudong-Zhonghua Shipbuilding (Group) is understood to limbering up for the business.
Carbon neutral goals
It is unclear how CNOOC plans to deploy the LNG vessels.
But brokers pointed to the CNOOC’s wide range of LNG import contracts — the company recently announced a free-on-board long-term deal to buy LNG from the Novatek-led Arctic LNG 2 project in Russia, interests in 13 Chinese LNG terminals and ambitions to extend its global reach further.
Last month, CNOOC expressed its interest in hooking up Qatar’s LNG $29bn North Field East Project.
The state-controlled energy company, along with other Chinese entities is under pressure to increase China’s supplies of natural gas in pursuit of the country’s goal of being carbon neutral by 2060.
CNOOC has said it wants to boost its supply of natural gas to account for more than 30% of its production by 2025, up from 19% today.
Chinese resales offered
The company’s request for offers on new LNG carriers comes as another pair of Chinese newbuildings are being quietly offered for resale.
Brokers said the 174,000-cbm Mu Lan and sistership Gui Yang, which are due for delivery from Hudong-Zhonghua in June and September respectively, are up for grabs.
The pair were ordered in early 2019 as part of a huge mixed newbuilding haul placed by CSSC (Hong Kong) Shipping Leasing at Chinese shipyards.
They were widely seen as the first speculative LNG orders placed by Chinese players. But brokers commented that the vessels have been constructed without reliquefaction capabilities.
The two vessels are among the seven LNG ships on order at Hudong-Zhonghua, five of which are due for handover this year.
If confirmed, the CNOOC newbuildings could help restock the flagging LNG orderbook at the Chinese yard.
Aside from the CSSC Shipping Leasing vessels, the shipbuilder is also due to handover two floating storage and regasification units to Dynagas this year and a single 18,600-cbm LNG bunker vessel to Mitsui OSK Lines.
The yard is also building two 79,960-cbm specialised size LNG carriers for K Line for delivery in 2022.
