Honghua Wins Order for 200 LNG Vessels

Honghua Group Ltd. informs it has signed a shipbuilding deal with LNG Power Shipping Ltd. for the construction of 200 eco-friendly inland river ships to be powered by liquefied natural gas (LNG).

The contract, worth approximately RMB760 million ($122.4 million USD), will see Honghua build and sell 200 LNG-powered inland vessels, including 700-ton ships, 950-ton ships and 1,350-ton ships. 

The builder expects to deliver all of the vessels by the end of September 2016.

Honghua Group chairman Zhang Mi commented on the deal, saying, “The LNG powered ships that [Honghua Group] will build are a new type of environment-friendly transportation vessel, directly responding to the concept of environment protection and energy saving. The LNG-powered ships, which are generally used in inland rivers, will greatly reduce the pollution emission during operation, and are not only in line with the 'Green Yangtse River' policy promulgated by the PRC government, but also enable the enterprises to cut fuel costs.”

Zhang Mi continued, “By virtue of [Honghua’s] excellent in-house R&D capability and advanced techniques in offshore engineering equipment manufacture, as well as the competitive edge of the giant Honghai Crane hoisting equipment and offshore base, [Honghua] will continue to expand its offshore business and the diversified business layout.”