China's First LNG Ship

China's first liquefied natural gas (LNG) carrier was launched in Shanghai, leading China's shipbuilding industry into a new era. The vessel is scheduled to go into operation in October 2007, according to the Hudong-Zhonghua Shipbuilding Group a subsidiary of the China State Shipbuilding Corp (CSSC). This marks a major milestone in the China's shipbuilding history. The LNG ships are considered to be high-tech products with high-added value, which could only be built so far in Japan, the Republic of Korea and several European countries.

China invested more than 100 million yuan in the research and technology development over the past few years in order to gain a share in the global LNG market. This commitment and efforts led to the first contract for LNG carriers in August 2004. The first LNG ship is 292 m long, 43.35 m wide and has a capacity of 147,200 cubic meters. The subsidiary group now shares an order of five LNG vessels, with the second vessel delivery expected in early 2008. The costs of the two LNG vessels approached 400 million U.S. dollars, according to the group.