Shandong Marine Expands LNG Carrier Fleet with New Orders
China’s Shandong Marine has taken a significant step in expanding its liquefied natural gas (LNG) carrier fleet by placing an order for four new vessels at Jiangnan Shipyard. This strategic move aligns with the company’s long-term vision to enhance its capabilities in the LNG sector. The newbuildings, each with a capacity of 175,000 cubic meters, are set to be chartered to Shell (Singapore) Trading upon their delivery, which is scheduled for 2028 and 2029. The deal involves Minsheng Financial Leasing as the shipowner, while Shandong Marine Energy will oversee commercial management, and Shell International Shipping will handle technical operations.
This order is part of a broader trend in the LNG shipping industry, as companies anticipate a surge in gas demand. Shandong Marine’s latest acquisition adds to its existing portfolio, which already includes two LNG newbuildings ordered from Samsung Heavy Industries in South Korea, expected to be delivered in 2026 and 2027. Additionally, the company is linked to three Q-Max LNG carrier newbuildings through a separate agreement with QatarEnergy, further solidifying its position in the market.
Jiangnan Shipyard: A Key Player in LNG Carrier Construction
Jiangnan Shipyard, a subsidiary of the China State Shipbuilding Corporation (CSSC), has emerged as a prominent player in the construction of large LNG carriers. Located on Changxing Island in Shanghai, the yard has experienced a steady influx of LNG-related orders over the past year, showcasing its growing capabilities in this competitive sector. As Chinese shipyards continue to close the gap with their South Korean counterparts, Jiangnan Shipyard is well-positioned to meet the increasing demand for LNG transportation.
The recent surge in LNG carrier contracting reflects a renewed interest among shipowners and investors in securing long-term gas supply contracts. Earlier this year, Eastern Pacific Shipping made headlines by placing its first LNG carrier order in China, contracting two 175,000 cu m vessels at Jiangnan for delivery in 2028. Similarly, Greek owner TMS Cardiff Gas has expanded its LNG orderbook with up to six newbuildings at Hudong-Zhonghua Shipbuilding, highlighting the competitive landscape in the LNG shipping market.
Competitive Landscape in LNG Shipping
The competitive dynamics of the LNG shipping industry are further underscored by ongoing orders from South Korean shipyards. Notable contracts include Seapeak’s order for two LNG carriers at Samsung Heavy Industries and Purus’s recent commitment to a pair of newbuildings valued at approximately $503 million. Additionally, Alpha Gas has returned to the market with an order for two LNG carriers at Hanwha Ocean, showcasing the robust demand for LNG transportation solutions.
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Samsung Heavy Industries recently announced a $507.6 million contract for two LNG carriers for a Bermuda-based owner, with speculation linking the deal to JP Morgan-backed Global Meridian Holdings. These developments collectively highlight the sustained momentum in LNG carrier contracting, as both Chinese and South Korean shipyards vie for a larger share of the growing long-term gas shipping demand. As the industry evolves, the strategic decisions made by companies like Shandong Marine will play a crucial role in shaping the future of LNG transportation.
