Shanghai-based Jiangnan Shipyard and Cosco Dalian Shipyard are making their break into the LNG-newbuilding business with a number of small-size ships.
 
Industry sources say Jiangnan has secured an order for up to two small-size LNG carriers. The yard will build one 30,000-cbm vessel for CNOOC Energy & Technology Services (CETS), which also has an option on a second ship. They will be fitted with type-C tanks for delivery dates in 2015.

CNOOC-controlled CETS has indicated the ships, which the Shanghai Merchant Ship Design & Research Institute (SDARI) has had a hand in designing, will be used to offload LNG from larger or existing terminals along the Chinese coast for redistribution at towns on the Yangtze River or other rivers inaccessible to pipeline gas.

Elsewhere in the country, local Dalian Inteh Group, a ship-investment and logistics company with interests in trading and chemicals, is said to have signed a contract worth CNY 560m ($90.1m) with Shanghai Bestway Marine Engineering & Design for a 28,000-cbm ship to be built at Cosco Dalian for delivery in March 2015.

The race is clearly on to be first off the blocks with small-scale ships for the domestic market with claims that the Cosco Dalian newbuilding will be the first LNG vessel of this size to be Chinese-flag.

Cosco Dalian is also understood to have been competing with Jiangnan and Bohai Heavy Industries for the CETS business. Dalian Inteh, which was working with gas engineers TGE and Hamworthy on the newbuilding, has a contract to transport LNG for CNPC Kunlun.

Interest in the small-scale LNG business is growing in China where plans are being developed to use the ships for coastal and upriver trading of cargoes. CNOOC is also said to be considering designs for vessels of around 16,000 cbm.