RMB 7.5 Billion Deal Signed Today! A Major Contract Secures a Strong Start to the Year

RMB 7.5 Billion Mega Deal Signed Today! A Strong Start with a Landmark Order

Today, the highly anticipated “CNOOC Medium- and Long-Term FOB Resource Supporting LNG Carrier Project” signing ceremony was held via video link between Beijing, Shanghai, and Tokyo.

CSSC Hudong-Zhonghua and CSSC International Trade Corporation, acting as joint sellers, officially signed a construction contract with Japanese shipping company Mitsui O.S.K. Lines (MOL) for six 174,000-cubic-meter LNG carriers of the world’s latest-generation “Changheng Series”. The contract value is approximately RMB 7.5 billion.

Notably, this is the largest LNG carrier order in terms of both the number of vessels taking effect in a single transaction and contract value for Chinese shipbuilders in nearly a decade. It not only marks the first breakthrough for Hudong-Zhonghua’s independently developed latest-generation “Changheng Series” LNG carriers in terms of orders, but also provides strong momentum for China’s LNG industry equipment sector to achieve a historic transition from following, to catching up, and ultimately leading globally.

The LNG carriers under this contract will adopt Hudong-Zhonghua’s independently developed “Changheng Series” design, which integrates the latest design concepts, advanced technologies, optimized equipment, superior environmental performance, and forward-looking solutions.

The vessels feature:

• Excellent speed performance

• Reduced lightweight tonnage

• Lower overall energy consumption

• Broad ship-to-shore compatibility

• Intelligent operation and maintenance capabilities

• Strong adaptability of the cargo handling system to different routes

Compared with previous vessels of the same type, the new design increases cargo capacity by 800 cubic meters, reduces carbon emissions by more than 10 tonnes per day, and achieves a ship energy efficiency design index (EEDI) ahead of the Phase 4 requirements. Its energy efficiency, environmental performance, and reliability have reached world-class standards.

In December 2021, the vessel design received General Design Approval (GDA) and Principle Approval (AIP/PCA) certifications from four leading classification societies, including ABS, Bureau Veritas (BV), Lloyd’s Register (LR), and DNV.

As a core shipbuilding enterprise under CSSC and China’s only comprehensive manufacturer covering the entire LNG equipment industrial chain, Hudong-Zhonghua has been deeply engaged in the global LNG storage and transportation equipment market for more than 20 years.

The company has independently developed five generations of LNG carrier series, including “Changqing,” “Changjian,” “Chang’an,” “Changxing,” and “Changheng.” It has delivered more than 30 large-scale LNG-related assets, including LNG carriers, LNG bunkering vessels, and floating storage and regasification units (LNG-FSRUs), as well as five 23,000 TEU LNG dual-fuel-powered container ships, the world’s largest of their kind.

Hudong-Zhonghua has also developed and reserved multiple next-generation LNG equipment solutions, including 270,000-cubic-meter LNG carriers and LNG power generation vessels.

On January 6, Hudong-Zhonghua additionally signed a contract with China Shipbuilding (Hong Kong) Shipping Leasing Co., Ltd. for another 174,000-cubic-meter LNG carrier.

As a result, during the first week of 2022 alone, Hudong-Zhonghua secured orders for seven LNG carriers, achieving a strong start to the year. The company currently holds orders for 23 LNG carriers, with nine vessels under construction and deliveries scheduled through 2025.