Asia/Pacific News
Japan, China Seek Share of LNG Carrier Newbuild Market
Japanese and Chinese shipyards are trying to increase their share of the growing market for liquefied natural gas (LNG) carriers, the Wall Street Journal reports.
South Korean shipbuilders now dominate the market for the vessels, with 100 LNG tankers built by the nation's yards since 2009, compared with 20 by Chinese firms and 13 by Japanese companies.
Building LNG carriers requires shipbuilders to have specialised technical skills to install tank linings.
"Currently, many of the Chinese yards lack the technology and quality controls required for sophisticated tanker construction," said Gary Li, a senior analyst at IHS Maritime.
The Chinese government is assisting the country's shipbuilders in developing those skills, and the companies are also working with Japanese shippers and yards.
Japan's Kawasaki Heavy Industries Ltd. is extending an existing relationship with China Ocean Shipping (Group) Co. (COSCO) into cooperation on LNG carriers.
"Orders of new LNG carriers in the next five years could be between 100 and 200, depending on how many North American projects come to pass," said Yoshikazu Nakaya, a shipping analyst with Mizuho Bank.
"South Korean and Japanese shipbuilders will take most of them, but Chinese shipbuilders may get a small part."
Japanese shipbuilders Mitsubishi Heavy Industries Ltd. and Imabari Shipbuilding Co. are also working together in a partnership with the capacity to build eight LNG carriers a year.
"The joint venture will help us a lot, as big LNG projects sometimes do not talk to shipbuilders with small capacity," a MHI spokeswoman said.
"We'll be able to sit at the negotiation table."
GE Marine said recently that it is working with China's Dalian Shipbuilding Industry Co. (DSIC) on next-generation LNG carriers in a partnership that could help the Chinese shipyard improve its technical capacity.
