According to Trade Winds, Yangzijiang Shipbuilding has recently received an order for three of the world's largest 99,000-cubic-meter VLECs from Singapore's SP Chemicals (SP Chemicals). The new vessels will be delivered between 2027 and 2028, with a cost of no more than $160 million each, which puts the total amount of the order at about $480 million (about RMB 3.466 billion).
The series of vessels will be designed by the China Academy of Shipbuilding and Ocean Engineering Design and Research (MARIC) and will utilize B-type liquid cargo tank technology, making them one of the largest VLECs in the world. Shipbrokers said Yangzijiang Shipbuilding offered a "favorable price" to SP Chemicals because it was the shipyard's first VLEC order.
VLEC newbuilding prices have risen significantly in recent years, with Clarkson data showing that four 99,000-cubic-meter VLECs ordered by Pacific Gas Ship (Hong Kong) Holding Ltd. at Jiangnan Shipbuilding in October 2022 cost only $132 million apiece at the time, while Jiangnan Shipbuilding has reportedly increased its price offer for such VLECs to $170 million, a price increase in less than two years. At that time, the cost was only US$132 million each, while the current offer of Jiangnan Shipbuilding for such VLECs has reportedly increased to US$170 million, a price increase of nearly 30% in less than two years.
This is the first time that SP Chemicals has ordered a new vessel as an owner, and the company has previously been operating 1-2 VLECs chartered from Pacific Gas, including the world's largest 99,000-cbm "Pacific SP Minerva", which was delivered to Pacific Gas by Jiangnan Shipbuilding earlier this year. "The vessel is the world's largest 99,000 cbm Pacific SP Minerva.
Founded in 1995, SP Chemicals has invested in the chemical industry in Taixing through its wholly owned subsidiary in China, SP Chemicals (Taixing) Co. After more than two decades of continuous growth and development, SP Chemicals (Taixing) has transformed itself from a chlor-alkali producer to a petrochemical producer by utilizing its own resources. The main products currently produced by the company include ethylene, propylene, styrene, vinyl chloride monomer, caustic soda, chlorine, hydrogen and other chemical raw materials.
The official information shows that Xinpu Chemical (Taixing) has an annual output of 750,000 tons of ionic membrane caustic soda plant, an annual output of 900,000 tons of vinyl chloride plant, an annual output of 320,000 tons of styrene plant, an annual output of 650,000 tons of ethylene 120,000 tons of propylene cracking plant, an annual output of 310,000 tons of high-performance styrenic polymer plant and its own cogeneration power plant. Relying on the golden waterway of Yangtze River, there are three wharves which can directly dock foreign ships: one liquid chemical wharf of 10,000 tons, one of 50,000 tons and one general bulk cargo wharf of 50,000 tons.
According to the plan of Yangzijiang Shipbuilding, Yangzi Mitsui Shipbuilding aims to become the world's most competitive clean energy shipbuilding base, and to take the global leading position in the field of medium-sized LPG, LEG, and LNG ship types. Yangzi Mitsui Shipbuilding went into operation in August 2019 and succeeded in securing its first order for an LPG vessel in 2020, a year later. In December last year, YSMS delivered its first 40,000 m3 dual-fuel LPG/LNG carrier, the GASCHEM EUROPE.
TaiXing Expansion Marine Equipment Co., Ltd., has a factory area of more than 20,000 square meters, a workshop area of more than 6,000 square meters, and an area of more than 4,000 square meters of office and auxiliary facilities. The test bench designed and manufactured by the company can be used for 350T dynamic load tensile test and 800T static load. Tensile test, can complete customized marine machinery products, welcome to cooperate.
