Hudong-Zhonghua poised for 6th LNG carrier

Shanghai-based Hudong-Zhonghua Shipbuilding is to secure a long awaited $200m order for its sixth 145,000m3 LNG carrier in the next few months. Negotiations are on-going between the shipyard and China National Offshore Oil Corp and China Merchants Energy Holdings and finalization of the contract would end months of speculation and talks between the Chinese energy giants and Malaysian shipping company MISC over the operation of the vessel.

When completed in 2011, the ship would transport LNG from Bintulu in Sarawak to a LNG receiving terminal in Shanghai operated by CNOOC. The Shanghai complex is expected to become operational in the next few months. If confirmed it is likely the ship would be managed by China LNG Shipping (International), a joint venture between China Ocean Shipping, China Merchants Group and BP Shipping, which is already managing five sister vessels. All are flagged in Hong Kong and classed by ABS.

Min Lu, which is the fourth in the fleet, is due to be delivered next month, about one month later than scheduled. A fifth vessel, Dapeng Star, is scheduled for delivery later this year. These newbuildings will join Dapeng Sun, Dapeng Moon and Min Rong, the first three vessels in the series built at Hudong-Zhonghua, transporting LNG to the CNOOC terminal in Shenzhen from Western Australia’s north-west shelf LNG project.