MOSCOW, 17 Oct – PRIME. Chinese shipyards are working around the clock to meet European countries’ demand for liquefied natural gas (LNG) ships, which has grown significantly in recent times, writes the Chinese state-run Global Times.
Gas supplies to Europe have recently been hampered due to damage to the Nord Stream gas pipeline and the ongoing Russian-Ukrainian conflict, the newspaper writes. According to the newspaper, this has led to recent double-digit growth in orders for LNG carriers, with some major Chinese shipbuilders reporting order delays that could last until 2026.
One of the Shanghai shipyards uses its capacity at 100%, and its orders are scheduled until 2026, despite the fact that it is now working around the clock on 18 large vessels at the same time.
State-owned shipbuilding company Hudong-Zhonghua Shipbuilding (Group) Co, a subsidiary of China’s second-largest shipbuilding corporation Chinese State Shipbuilding Corporation (CSSC), has also seen a significant increase in orders recently. A company employee told the Global Times that there are currently six ships in production, with the shipyard operating around the clock and at full capacity. The company has 33 orders for the construction of large LNG carriers, of which 26 were received this year.
Europe is the third largest consumer of LNG in the world, and it is heavily dependent on imports, both through pipelines and ships, the newspaper notes. “As the energy crisis worsens, European market participants are beginning to look everywhere for ships that can carry LNG,” the authors of the article note.
In the first eight months of the year, the volume of ships built in China amounted to 23.94 million tons, which is 45.4% of the world market, and in terms of the number of new orders, China came out on top in the world, the newspaper writes, citing data from the China Shipbuilding Industry Association. It is noted that 50.6% of new orders in the global market falls on Chinese shipbuilders.