Xinao Group Commences LNG Transport Ship Lease Project

(Source: Shipping Brokerage)

On March 18, the groundbreaking ceremony for the LNG carrier H1898A project leased by Sinochem Holdings was held at Hudong Zhonghua Shipbuilding (Group) Co., Ltd. Changxing Island yard. This project is the first of six large-scale 174,000 cubic meter LNG carriers in the series, with Sinochem Holdings as the lessee. The official start of construction marks a new step for Sinochem Holdings in improving the international LNG transportation support system and enhancing global resource allocation capabilities.

Jiang Chenghong, Chairman and Co-CEO of Sinochem Holdings; Ye Dongsheng, Deputy General Manager of the Smart Natural Gas Trading Business Group; Wang Sihai, Deputy General Manager of the International Trade Group; Wu Jian, General Manager of Shipping; representative from the shipowner side, Mitsui O.S.K. Lines Executive Officer Jin Yuancheng; Zhu Maijin, Executive Director and General Manager of COSCO Shipping Energy Transportation; along with project contractor Hudong Zhonghua Shipbuilding (Group) Co., Ltd. Party Secretary and Chairman Chen Jianliang, DNV classification society, China Classification Society, and other leaders and guests jointly witnessed this important moment.

At the ceremony, representatives from all parties pressed the start button together to ignite the H1898A project. As the CNC cutting machine cut the first steel plate in the workshop, it signified that the H1898A vessel officially entered the substantive construction phase. As the first ship in Sinochem Holdings’ LNG capacity plan, this vessel is based on the Hudong Zhonghua fifth-generation LNG carrier “Changheng” series, equipped with WinGD’s latest generation low-speed dual-fuel two-stroke engine, and optimized according to the latest international maritime regulations. It achieves improvements in transportation economy, environmental performance, operational reliability, and safety. According to the plan, the remaining related ships will start construction sequentially from 2026 and be delivered gradually between 2027 and 2028.

In recent years, global LNG trade has continued to develop, and the importance of resource pool allocation, transportation support, and risk management collaboration has further increased. Especially with the increasing number of medium- and long-term resource contracts and the normalization of buyers bearing transportation responsibilities, stable and controllable capacity arrangements have become a key support for resource fulfillment and supply chain resilience. Since 2022, Sinochem Holdings has signed long-term LNG purchase and sale contracts with the U.S. Gulf Coast. According to the contracts, the company is responsible for cargo transportation. To effectively fulfill procurement obligations and ensure smooth transportation, Sinochem Holdings has also initiated new capacity preparations and advanced in phases according to the established plan.

After the ceremony, all parties exchanged views on LNG vessel construction, capacity support, and future full-industry chain cooperation. The project’s commencement is not only an important milestone in Sinochem Holdings’ international resource layout but also another step in deepening collaboration with shipowners, shipyards, and industry chain partners.