(21 March 2024, Hong Kong) – CIMC Enric Holdings Limited and its subsidiaries (collectively, "CIMC Enric" or "Company") (stock code: 3899.HK) are delighted to release that Nantong CIMC SinoPacific Offshore & Engineering Co. Ltd. ("CIMC SOE"), a subsidiary of the Company, has recently signed a contract with European Shipowner for an order of 2+2 40,000 m3 LPG/liquid ammonia carriers. This deal not only underscores again CIMC Enric's significant presence in the international market for liquefied gas vessels, but also reflects the Company’s proactive approach and unwavering commitment to fostering the advancement of green maritime transport.
The newly contracted vessels will match the specifications of the four 40,000 m3 LPG/liquid ammonia carriers currently under construction by CIMC SOE. These ships will measure 180 meters in length and 29.80 meters in beam, with a design draft of 10 meters and a design speed of 16 knots. As the next generation of medium-sized LPG/liquid ammonia carriers, these vessels will feature LPG dual-fuel propulsion and be equipped with MAN's high-pressure LPG dual-fuel main engines, effectively reducing operational pollution and greenhouse gas emissions.
It's worth mentioning that each vessel will be outfitted with three IMO A-type cargo tanks, which will optimize tank capacity and enhance the ship's economic performance, and will be capable of transporting various liquefied gas cargoes, including LPG, liquid ammonia, and vinyl chloride monomer (VCM), which will meet the demand for reloading and shipping different cargoes. Undoubtedly, this carrier will occupy a place in the future market for liquefied gas transportation. This carrier offers storage and transportation solutions for liquid ammonia as a key vector for hydrogen and other zero-carbon energy sources. In addition, with its wide application in agriculture, chemical, and manufacturing industries, the global market for liquid ammonia has reached tens of billions of US dollars. With the increasing demand for environmental sustainability and the rapid development of emerging markets, the liquid ammonia market is expected to continue to expand, further stimulating demand for this type of vessel in the project.
With the shipbuilding industry experiencing a sustained upturn in its boom cycle in recent years, newbuilding ship prices have risen sharply. For example, the Clarkson Newbuilding Price Index rose to 180.36 points in early January 2024, marking a YoY increase of 10.8% and reaching its highest level since December 2008. The rise in newbuilding ship prices indicates market supply and demand dynamics and results from technological iteration and equipment upgrading. As environmental regulations tighten, the maritime industry accelerates its decarbonization efforts, leading to a progressive rise in energy efficiency standards for vessels.
With 16 years dedicated to liquefied gas ships, CIMC SOE has developed its own capabilities in the design, construction, and project management of marine liquid and fuel tanks and shipbuilding. As a leading enterprise in the niche markets of small and medium-sized liquefied gas carriers and LNG refuelling vessels, CIMC SOE is capable of providing clients with energy-efficient, eco-friendly, and technologically innovative liquefied gas transport solutions. The products cover a wide range of liquefied gas carriers such as LPG, ethane, ethylene, LNG, etc., including on-demand vessels such as large-scale ethane carriers and LNG refuelling vessels.
Mr. Gao Wenbao, Vice President of CIMC Enric and General Manager of CIMC SOE, stated, "Over recent years, the shipbuilding industry has maintained positive momentum, and the green transformation of ships has accelerated across the board. CIMC SOE will continue its commitment to excellence in building a comprehensive range of medium-sized liquefied gas carriers and providing its clients with high-quality green vessels, thereby contributing to the low-carbon, sustainable, and high-quality development of the global maritime industry."
