Hengli Heavy Industries Plans to Build LNG Carriers with “Build-Before-Sale”
Hengli Heavy Industries, a prominent Chinese shipbuilder known for its successful forays into the Very Large Crude Carriers (VLCCs) and Very Large Ammonia Carriers (VLACs) sectors, is now set to enter the construction of Liquefied Natural Gas (LNG) carriers. This strategic move positions Hengli Heavy Industries as the sixth shipbuilder in China with the capability to build large-scale LNG carriers.
Plans to Build Two LNG Carriers
According to reports from TradeWinds, Hengli Heavy Industries is planning to independently construct two LNG carriers, marking a significant milestone in the company’s expansion into the gas carrier sector. This endeavor would make Hengli Heavy Industries the second private Chinese shipbuilder, following Yangtze River Shipbuilding, to undertake the construction of large LNG carriers.
For the past two years, Hengli Heavy Industries has been preparing for its entry into the LNG carrier market. The shipbuilder engaged in discussions with GTT, a leading French provider of liquid cargo containment systems, culminating in the signing of a patent cooperation agreement for membrane-type containment systems. Technical teams from GTT visited Hengli Heavy Industries in China, leading to successful qualification audits and approvals from major classification societies.
On January 22, 2025, Hengli Heavy Industries and GTT formalized their partnership, paving the way for collaboration on LNG membrane-type containment systems, LNG fuel tanks, and various vessel designs. This agreement signifies a crucial step for Hengli Heavy Industries to establish itself in the competitive LNG carrier market.
Embracing the “Build-Before-Sale” Strategy
Drawing from its success in the VLCC and VLAC sectors, Hengli Heavy Industries plans to adopt a “build-before-sale” approach for its LNG carrier construction. This strategy involves constructing the vessels first and then offering them to potential buyers based on market conditions. With the backing of its parent company, Hengli Group, Hengli Heavy Industries has effectively utilized this model in previous ventures, including the construction of VLCCs and VLACs.
The company’s entry into the LNG carrier market is expected to heighten competition among Chinese and South Korean shipbuilders. With Hengli Heavy Industries poised to become the sixth shipyard in China capable of constructing LNG carriers, the industry landscape is set for further evolution.
In conclusion, Hengli Heavy Industries’ expansion into LNG carrier construction underscores its commitment to innovation and market responsiveness. By leveraging its expertise and strategic partnerships, the company is poised to make a significant impact in the global shipbuilding industry.
