China’s Saga LNG Shipping has set up fresh multi-year employment for its A-type LNG carrier with a compatriot gas company.
Brokers reported the company’s lone LNG carrier — the 45,000-cbm Saga Dawn (built 2019) — has been fixed for a period of eight years to Jiaxing Gas Group.
The vessel, which was the first to be built with the owner’s LNT A-Box cargo tanks, is currently on charter to Chinese trader Jovo.
Saga LNG chairman David Wu did not respond to questions about the fixture.
Jiaxing Gas operates a local gas pipeline distribution network. It claims to be the largest supplier of piped natural gas in the city of Jiaxing and the fifth-ranking outfit of more than 200 gas suppliers in Zhejiang province.
Terminal development
But the company, which floated on the Hong Kong Stock Exchange last year, will also manage an LNG terminal and storage facility via its 2017 Hangjiaxin joint venture for the Dushan Port Project.
When complete, this will offer 200,000-cbm of LNG storage in two tanks and import capacity of 600,000 tonnes per annum.
The terminal was due to start in trial mode last year but was delayed along with other Chinese LNG facilities.
Saga LNG’s vessel could be a good fit for the small-scale terminal.
Initially, the company struggled to fix its pioneering newbuilding, with companies proving wary of trading a ship fitted with a new type of cargo tank.
But the vessel, which was built at China Merchants Heavy Industry's Jiangsu yard, is an unusual size and one that is likely to prove attractive for local and intra-basin trading in South East Asia.
Its nearest cousins are two other Chinese-built ships of about 30,000 cbm: the Hai Yang Shi You 301 (built 2015) and Coral Encanto (built 2018).
At the larger end are two older vessels — the 65,000-cbm sisterships Portovenere (built 1997) and Lerici (built 1998) — that are controlled by Malaysia’s MISC.
The Lerici is also on charter to Jovo.
Wu said last year that Saga would focus on small and medium-size LNG carriers in the 40,000-cbm to 100,000-cbm range for regional trading and project business.
