XinAo Corporation's LNG transportation vessel leasing project officially kicks off at Hudong-Zhonghua

SHPGX Introduction: On March 18, the groundbreaking ceremony for the LNG carrier H1898A project, leased by Xin’ao Co., Ltd., was held at the Changxing Island plant of Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. This project is the first vessel to commence construction in a series of six large LNG carriers, each with a capacity of 174,000 cubic meters, with Xin’ao Co., Ltd. as the lessee of the relevant vessels. The official commencement of the project marks a new step for Xin’ao Co., Ltd. in improving the international LNG transportation security system and enhancing global resource allocation capabilities.

On March 18, the groundbreaking ceremony for the LNG carrier H1898A project, leased by Xin’ao Co., Ltd., was held at the Changxing Island plant of Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. This project is the first vessel to commence construction in a series of six large LNG carriers, each with a capacity of 174,000 cubic meters, with Xin’ao Co., Ltd. as the lessee of the relevant vessels. The official commencement of the project marks a new step for Xin’ao Co., Ltd. in improving the international LNG transportation security system and enhancing global resource allocation capabilities.

The chairman and co-CEO of Xin’ao Co., Ltd., Jiang Chenghong; the deputy general manager of the natural gas trade intelligent business group, Ye Dongsheng; the deputy general manager of the international trade group, Wang Sihai; and the general manager of shipping, Wu Jian; along with the shipowner’s representative, Mitsuaki Inoue, an executive of Mitsui O.S.K. Lines, Ltd., and Zhu Maijin, executive director and general manager of COSCO Shipping Energy Transportation Co., Ltd.; as well as Chen Jianliang, secretary of the party committee and chairman of Hudong-Zhonghua Shipbuilding (Group) Co., Ltd., and leaders and guests from DNV GL, China Classification Society, and other relevant organizations witnessed this important moment together.

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 processing workshop, it marked the formal entry of the H1898A vessel into the substantial construction phase. As the first vessel to commence construction in Xin’ao Co., Ltd.'s LNG capacity arrangements, this vessel is designed based on the fifth-generation LNG carrier “Changheng” series from Hudong-Zhonghua and is equipped with the latest generation of low-speed two-stroke dual-fuel internal combustion engines from WinGD. The overall design has been optimized according to the latest international maritime regulations, achieving enhancements in transportation economy, environmental performance, operational reliability, and safety. According to the plan, the remaining relevant vessels will successively commence construction starting in 2026 and will be delivered between 2027 and 2028.

In recent years, global LNG trade has continued to develop, and the importance of coordinated resource pool allocation, transportation security, and risk management has further increased. Especially against the backdrop of an increasing number of medium- and long-term resource contracts, where buyers gradually take on transportation responsibilities as a norm, stable and controllable capacity arrangements have become an important support for ensuring resource fulfillment and enhancing the resilience of the industrial chain. Starting in 2022, Xin’ao Co., Ltd. has successively signed long-term purchase and sales contracts for LNG in the Gulf of Mexico. According to the contract terms, the responsibility for the transportation of goods is assumed by the company. To effectively fulfill procurement contract obligations and ensure the smooth transportation of goods, Xin’ao Co., Ltd. has simultaneously launched preparations for new capacity and is advancing according to the established phased plan.

After the ceremony, all parties exchanged views on the construction of LNG carriers, capacity security, and future cooperation across the entire industrial chain. The commencement of this project is not only an important milestone for Xin’ao Co., Ltd. in promoting international resource layout but also another practice of deepening collaborative cooperation with shipowners, shipyards, and industrial chain partners.