China to build more LNG tankers

Chinese shipbuilders are gearing up to build LNG tankers as the Government approves more projects to import the fuel, challenging yards in South Korea and Japan.

China’s first home-built LNG tanker will be completed in November by Shanghai’s Hudong-Zhonghua Shipbuilding, which has orders for three more at about $200 million apiece. Another three Chinese shipbuilders are ready to build gas carriers according to the UK class society, Lloyd’s Register.

China’s shipyards plan to double capacity by 2010 as they compete with rivals in South Korea and Japan for market share and it will be difficult for other Asian countries to compete on price as China brings ever more capacity on line. Jiangnan Shipyard Group will be part of the world’s largest shipbuilding complex when it moves from central Shanghai to nearby Changxing Island in the mouth of the Yangtze River.