First Phase 2 Vessel Delivered as CNOOC's 12-Ship LNG Programme Passes Halfway Mark
The 174,000-cubic-metre LNG carrier LÜ NENG CHUAN has been named and delivered at Changxing Island, taking deliveries under CNOOC's long-term FOB shipping programme to seven vessels.
The first vessel in Phase 2 of CNOOC’s LNG carrier programme for long-term FOB supply was named and delivered at Changxing Island, Shanghai, on 4 August. Delivery of the 174,000-cubic-metre LÜ NENG CHUAN brings the programme total to seven ships.
The 12-Vessel Programme Moves from Phase 1 into Phase 2
The programme comprises 12 large LNG carriers in two six-ship phases. The sixth Phase 1 vessel, LÜ NENG YUN, was delivered in June, putting all six ships in the first series into service. LÜ NENG CHUAN is the first Phase 2 vessel, with the remaining Phase 2 deliveries concentrated in 2026 and 2027 under the schedule announced when the project was signed in 2022.
Like the Phase 1 ships, LÜ NENG CHUAN is a fifth-generation 174,000-cubic-metre Changheng-class LNG carrier developed by Hudong-Zhonghua. It is 299 metres long and 46.4 metres wide. A full cargo is equivalent to about 100 million cubic metres of natural gas after regasification.
The vessel uses a membrane cargo-containment system with a natural boil-off rate as low as 0.085% and is fitted with an LNG subcooling system. Its X-DF 2.1 iCER low-speed dual-fuel engine can burn fuel oil or cargo boil-off gas, reducing fuel consumption, methane slip and greenhouse-gas emissions.
Hudong-Zhonghua said the naming milestone was reached one month ahead of schedule. The yard has now delivered 65 LNG carriers, including LÜ NENG CHUAN.
Joint Ownership, Long-Term Charter and Specialist Management
The vessel is owned through HUAJING LNG TRANSPORT PTE. LTD., whose participants include NYK Line, CNOOC Gas and Power Trading & Marketing Limited Singapore Branch, CETS Investment Management (HK) Co., Ltd. and CMES LNG Project 4 Company Limited, a China Merchants Energy Shipping subsidiary.
The six Phase 2 vessels will serve CNOOC Gas and Power’s Singapore trading business under long-term charter arrangements, transporting globally sourced LNG mainly to China. LÜ NENG CHUAN is scheduled to enter service in August, with ship management provided by OPearl LNG Ship Management Company Limited.
Established in Hong Kong in December 2023, OPearl is backed by NYK, CMES LNG Shipping Company Limited and CETS. The structure separates LNG procurement and chartering, project-company ownership, day-to-day ship management and construction by Hudong-Zhonghua.
LÜ NENG CHUAN is also the first Chinese-built LNG carrier in which NYK has participated for long-term service to a Chinese customer.
FOB Supply Creates a Need for Dedicated Shipping Capacity
Under an FOB LNG contract, the buyer generally arranges ocean transport after loading. As CNOOC’s portfolio of long-term FOB supply grows, its shipping capacity must cover multiple export projects, routes and receiving terminals.
CNOOC said the six Phase 1 vessels had carried more than three million tonnes of LNG by July, calling at more than 50 receiving terminals across five continents. Two vessels, LÜ NENG YING and LÜ NENG ZHU, have also received Singapore Green Ship awards.
When both phases are complete, the programme will provide 12 LNG carriers with combined cargo capacity of about 2.088 million cubic metres, strengthening CNOOC’s ability to organise transport for its international LNG portfolio.
Sources: CNOOC Energy Technology & Services, Hudong-Zhonghua Shipbuilding and NYK Line.