Yangzijiang Shipbuilding has broken into the red-hot very large ammonia carrier segment with a deal worth around $440m.
Sources following the Singapore-listed Chinese shipyard’s activities said it has struck a deal with Nissen Kaiun for four 88,000-cbm vessels.
The Japanese tonnage provider is said to have ordered the quartet against seven-year time charters with energy trader BGN.
Sources said Yangzijiang joint venture Jiangsu Yangzi-Mitsui Shipbuilding will construct the VLACs and deliver them between 2028 and 2029.
Officials at Yangzijiang and Nissen declined to comment when contacted by TradeWinds.
The design is said to have been developed by Marine Design & Research Institute of China (Maric). The vessels will feature type A tanks.
Brokers suggested they will cost around $110m each.
“As this is Yangzijiang’s first VLAC contract, we think the shipyard has offered a competitive price,” said one broker.
The last VLACs contracted in China were at Jiangnan Shipyard.
The state-owned shipbuilder, which is known as a gas ship specialist, was reported to have received orders for four 93,000-cbm VLACs from Adnoc Logistics & Services priced at around $120m each.
Nissen Kaiun is one of the largest shipowners in Japan and has a diverse fleet of close to 200 ships.
Clarksons’ Shipping Intelligence Network lists it as owning 12 VLGCs that are operated by BW LPG, Eneos, E1 Corp and Chevron Shipping.
On the newbuilding front, Nissen Kaiun has an orderbook of 55 ships, including the four VLACs at Yangzijiang.
It has 31 MR tankers on order at various Hyundai yards, plus container vessels, midsize LPG ships, handysize chemical tankers and reefer ships.
Yangzijiang will be the third Chinese shipyard to build VGLCs/VLACs, after Jiangnan and Shanghai Waigaoqiao Shipbuilding.
Brokers said two other shipbuilders, China Merchants Heavy Industry (Jiangsu) and reborn Hengli Heavy Industry, are also trying to break into the VLGC/VLAC segment.
In May, Yangzijiang made its debut in the very large ethane carrier sector when it bagged an order for three 99,000-cbm vessels from Singapore-headquartered SP Chemicals, also known as Singpu Chemicals.
Brokers speculated that SP Chemicals had received a “special” price of less than $160m per ship as this was the first VLEC deal for the yard.
The type-B tank cargo solution VLECs were designed by Maric.
Yangzijiang is expanding capacity with a new facility to meet rising newbuilding demand and to build high-value-added ships.
It plans to invest CNY 3bn ($413m) to construct the facility over the next two years to build LNG carriers and other cleaner-energy vessels.
The new base will have an annual production capacity of about 800,000 dwt, or an output of not less than $1.38bn.
