China’s Dalian Shipbuilding Delivers its First LNG Newbuild

DSIC's first LNG carrier was delivered as China seeks to build its share of the market (CSSC)

Published Sep 25, 2025 5:48 PM by The Maritime Executive

 

 

Chinese shipbuilding’s efforts to chip away at South Korea’s domination of the LNG carrier market took another step forward as Dalian Shipbuilding delivered its first newbuild LNG carrier. The vessel is the first of eight being built for China Merchants Energy Shipping and is being highlighted as DSCI’s first independently designed vessel in this key segment of the industry.

Parent company China State Shipbuilding Company hailed the vessel as part of the “crown jewel of the shipbuilding industry.” It highlights the “extremely high design and construction difficulty” for LNG carriers as another demonstration of China’s expanding expertise in shipbuilding. The handover celebration took place in Dalian on Wednesday, September 24. 

Chinese yards have begun to break into the LNG segment, building for both domestic carriers such as CMES and for export. They were successful in winning a few international orders linked to Qatar and its massive shipbuilding program. LNG carriers had traditionally been the domain of the South Korean yards, which still win the majority of the orders for these vessels.

While they are highlighting the domestic shipbuilding capabilities, the new ship Sea Spirit uses the well-established GTT Mark III membrane containment system along with a reliquification unit. France’s Gaztransport & Technigaz (GTT) remains the supplier of the containment systems to the world’s carriers despite efforts to develop competing systems.

The new ship is otherwise a fairly standard LNG carrier with a capacity of 175,000 cbm. DSIC highlights that by employing the standard size, the vessel will be able to dock at the vast majority of LNG terminals worldwide. They report the ship will have "excellent port adaptability and ship-to-shore compatibility." The ship is 295 meters (968 feet) in length. It is powered by an LNG dual-fuel low-speed main engine.

China Merchants ordered its first LNG carriers from DSIC in 2022. The initial order was for two ships with options that were later exercised. The order has been expanded to eight ships, and they will operate through a number of joint ventures, including with PetroChina and Sinochem. In 2024, NYK announced the formation of its sixth shipmanagement company, OPearl, which it said would manage LNG carriers, including six vessels that will be chartered to CNOOC Gas and Power Singapore Trading & Marketing. China Merchants is a partner along with CETS Investment Management (HK) Co., a subsidiary of the CNOOC Group, in the management company.

DSIC floated the first ship in May 2024 and reported that sea trials combined with gas trials were completed in July 2025. The yard has also launched Sea Navigator, Sea Creation, Sea Argosy, Sea Energy, and Sea Charity, as it works to fill out the order.

EPS to Consolidate LNG Transport by Buying Remaining Shares of CoolCo

CoolCo owns 13 LNG carriers having grown since in 2022 spin off from Golar (CoolCo)

Published Sep 24, 2025 7:39 PM by The Maritime Executive

 

 

CoolCo, a pure play LNG Carrier, which has been publicly traded for just over three years, is in advanced discussions with its majority owner, Eastern Pacific Shipping, for a potential buyout of its outstanding shares. The move comes in response to the outlook for LNG shipping after CoolCo grew rapidly after being spun off from Golar LNG in 2022.

EPS worked with Golar in the formation of the dedicated LNG shipping company to simplify the corporate structure and create a pure play well-positioned to participate in the rapidly growing LNG market. Three years later, analysts expect an emerging oversupply of LNG as the United States and others have moved rapidly to increase production and exports. There has also been a rush to build vessels for the sector, and now the U.S. is looming over the business with a proposed requirement that a portion of LNG exports must be carried on U.S.-flagged vessels.

“Despite challenging market conditions, our commitment to CoolCo’s long-term development and, above all, to serving our charterers with the highest level of reliability and dedication remains unchanged. We believe our offer provides the best long-term alternative for CoolCo shareholders, and we hope to bring this proposed transaction to a close in the very near future,” said Cyril Ducau, CEO of Eastern Pacific Shipping.

The terms being discussed call for a cash offer of $9.65 per share for the 41 percent of the stock that EPS does not currently own. It represents a 26 percent premium to the closing price on September 22, 2025, and a 38 percent premium to the 90-day trading average. The Board of Directors of CoolCo has established an independent Special Committee, comprised solely of independent and disinterested directors, to review and negotiate the terms of the potential transaction. 

CoolCo traces its origins to the founding of Gotaas-Larsen in 1946 and the company’s first LNG carrier ordered in 1970. Gotaas-Larsen became Golar in 2001 and later entered the FLNG sector as a developer of floating terminals, and today is the only independent provider of FLNG as a service. They separated the business in 2022 as part of a long-term plan that the companies had been pursuing for several years. 

The LNG standalone company named CoolCo emerged, owning eight vessels, and acquired the ship management business from Golar. Today, the fleet consists of 13 LNG carriers owned by CoolCo as well as three additional managed vessels. It took delivery on two newbuilds in Q4 2024 and Q1 2025, while highlighting that its strategy includes ongoing assessment of growth opportunities through vessel acquisitions and potential consolidation in the fragmented LNG market. It draws on its relationship with EPS to strengthen its position with shipyards, financial institutions, and deal flow access.