China charts a new course with LNG carriers

China’s recent launch of its first domestically built liquefied natural gas (LNG) carrier ship marked a significant upgrade of the country’s shipbuilding industry.

..Chinese officials also have no doubt that the specialized natural-gas carriers mark a significant departure for Chinese shipbuilding. “The construction of China’s first LNG carrier implies that China’s shipbuilding industry has entered a new phase, and it will make the industry more competitive in the world market,” was the view of Zhang Xiangung, a senior official of the Commission of Science, Technology and Industry for National Defense.

..All these proposed facilities face one common problem, which could well trim the number of terminals proposed – will there actually be enough LNG for all of them? One of the drivers of China’s foreign policy at the moment is its need for commodities, especially energy.

As other big economies, such as India, start to join the melee, the competition will drive prices up and the results of this process are already pushing China financially.

“China will have a very difficult time buying LNG at the prices it’s willing to pay,” Mark Pilcher, vice president of BP’s global LNG division, said recently. “Right now, there is a shortage of LNG in Asia and that’s why prices are so high. [The same is] also definitely true in the world.”

Asia Times