Chinese Shipbuilders Intensify LNG Carrier Push, Challenging Korean Market Lead
What happened
Chinese shipbuilders are escalating their push into the liquefied natural gas (LNG) carrier segment. Hengli Group, a chemical company, is moving into this high-technical barrier market. If Hengli successfully enters, it would become the sixth shipbuilder in China capable of producing LNG carriers, and the second among private shipbuilders. Currently, Hengli plans to build the ships first and then find owners.
Why it matters
Korea has led the global LNG carrier market since the 2000s. Chinese shipbuilders are leveraging price competitiveness and construction experience to encroach on this market. This increased capacity and market entry from Chinese firms are narrowing Korea's dominant position in the order race.
Who's involved
- KoreaRegion whose shipbuilding market is facing increased competitive pressure from Chinese firms.
- Hengli GroupChemical company pushing into the high-technical LNG carrier market segment.
- Yangzijiang ShipbuildingOwner of several Chinese shipyards facing competitive pressure from aggressive players.
- China Merchants Heavy IndustryChinese shipyard whose market faces increased competitive pressure from aggressive players.
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The entities involved
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Korea
region in East Asia
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Hengli Group
Chinese chemical company
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