CNOOC Inks Building of 6 Largest LNG Ships in China

China National Offshore Oil Corporation (CNOOC) on April 28 signed an agreement on the construction project of the six liquefied natural gas (LNG) ships via video link after contracting for six other ships of the same type this January.

The building cost of the 12 LNG ships will be about 16 billion yuan ($2.39 billion), making it the largest LNG ship construction project with the greatest investment in China. The ships are expected to effectively enhance the independence of the country's LNG transportation industry chain.

The 12 ships will adopt the latest fifth generation LNG ship type independently developed by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. and jointly upgraded with CNOOC.

Equipped with the world's most advanced main engine system and the latest cargo tank technology, the vessels will consume much less fuel at reduced transport costs.

Meanwhile, carbon emissions of the ships will meet the highest international standards and the ships' performance, environmental protection indexes and technology levels will be at the internationally-leading level.

An LNG ship is a special vessel for transporting LNG at a temperature of minus 162 degrees Celsius, and has a high status in the global shipbuilding industry, matching those of aircraft carriers and luxury cruise ships.

The newly-inked LNG ships have a maximum LNG loading capacity of 174,000 cubic meters, which is about 108 million cubic meters of gas after vaporization, enough for domestic gas utilization in Beijing for about 16 days.

They are scheduled to be delivered year by year between 2024 and 2027.

A view of a CNOOC LNG ship about to start service [Photo/sasac.gov.cn]

In recent years, China has witnessed dramatic growth in LNG imports. The volume reached 78.93 million metric tons in 2021, accounting for 65 percent of the country's natural gas imports in the same period and making it the world's largest LNG importer, surpassing Japan.

However, for quite a long time, China's LNG import mainly relied on transport by the sellers or a third party as the country had a relatively weak capacity in LNG transport.

As China's largest and the world's second-largest LNG importer, CNOOC has been committed to promoting the overall development of the country's LNG industry chain.

The company signed an order for its first chattered ship with Hudong-Zhonghua Shipbuilding (Group) Co., Ltd., a subsidiary of China State Shipbuilding Corporation Limited (CSSC) in 2000 and has so far taken ownership of 10 domestically-built LNG vessels. It's worth noting that CNOOC and CSSC have made several breakthroughs in independent design and construction of LNG ships.

With support of the country's main oil enterprises like CNOOC, Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. has delivered more than 20 large LNG ships and is becoming a world-class LNG shipyard.

Meanwhile, CNOOC will also join hands with China Merchants Group and some international shipping companies to participate in building, supervision and construction, and management and operation of the ships. Once they are delivered, CNOOC will mainly be responsible for scheduling and resource transportation, which is expected to enhance China's independence in the whole cycle of LNG transport.

A bird's-eye view of an LNG ship berthing at a port [Photo/sasac.gov.cn]

(Executive editor: Wang Ruoting)