On October 28, Zhejiang Jiahua Energy Chemical Industry announced that it plans to construct a 102,000 m³ large-scale liquefied hydrocarbon carrier; the project has been reviewed and approved by the company’s Board of Directors.
According to the announcement, in order to enhance the risk resilience of its core business and reduce the overall cost of raw materials, Zhejiang Jiahua Energy Chemical Industry (or its controlled subsidiaries) plans to invest in the construction of a large-scale, 102,000 m³ liquefied hydrocarbon carrier. The order has been secured by Jiangnan Shipyard in collaboration with China Shipbuilding Trading Co., Ltd. (CSTC). The total investment is expected not to exceed $165 million, and the new vessel is scheduled for delivery by June 30, 2030.
The vessel is primarily used for the company’s own operations, with the main purpose being to transport large volumes of liquefied hydrocarbon feedstock from overseas to ensure a stable supply of raw materials for the company’s PVC production. Surplus capacity is made available to domestic refining and petrochemical companies and traders.
Zhejiang Jiahua Energy Chemical Industry states that constructing its own ocean-going vessels will better serve its industrial requirements, ensure a stable supply of raw materials, and reduce overall costs. Furthermore, by supporting the business development of its proprietary and equity-held port terminal companies, the company can foster synergy across its port storage and logistics segment, unlock and enhance the strategic value of its terminal and storage assets, and secure long-term, sustainable, and high-quality development.
This is the second order for liquefied hydrocarbon carriers announced by Zhejiang Jiahua Energy Chemical Industry in the second half of the year. Previously, on August 22, the company announced plans to build one 35,000-cubic-meter medium-sized liquefied hydrocarbon carrier, with a total investment not exceeding 750 million yuan. The vessel will be constructed by Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) and is scheduled for delivery by December 31, 2029.