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Economy

What are the benefits of this delivery model for China's liquefied natural gas industry, from onshore to offshore?

2024-05-15   

Today (May 15th), the first ship of China National Offshore Oil Corporation's largest liquefied natural gas carrier construction project, the "Green Energy Ying", was successfully delivered on Changxing Island in Shanghai, marking new progress in China's construction of large-scale liquefied natural gas carriers. The liquefied natural gas industry chain is interconnected, and maritime transportation is an important link connecting liquefied natural gas resources and domestic users. The operation of domestic liquefied natural gas transport ships represented by "Green Energy Ying" marks a new breakthrough in China's independent transportation capacity for liquefied natural gas. For a long time, as an importer of liquefied natural gas, China has mainly relied on onshore delivery mode for resource delivery, and the transportation rights are mainly held by international large resource merchants. The liquefied natural gas carrier "Green Energy Ying" adopts an offshore delivery mode, which means that the seller delivers the goods to the designated vessel and completes the export customs clearance procedures. Under the offshore delivery mode, China can freely mobilize the flow of goods and deliver them to other delivery locations outside the preferred destination port, quickly responding to market changes and enhancing international trade flexibility. Huang Guoliang, Oil Production Service Branch of CNOOC Energy Development Co., Ltd.: Through independent shipping scheduling, we aim to expand the industrial coverage from resource sources to end-users, promote the extension of the industrial chain, and improve the stability and sustainable development of China's liquefied natural gas industry and supply chain. In recent years, the import volume of liquefied natural gas in China has grown rapidly, reaching 71.32 million tons in 2023, a year-on-year increase of 12.6%, once again surpassing Japan and becoming the world's largest importer of liquefied natural gas. Zhu Yanyan, Director of the Resource Center of China National Offshore Oil and Gas Corporation (CNOOC), said that having an independent and controllable liquefied natural gas transportation fleet can enable us to better grasp the initiative of trade, enhance China's resource bargaining power and international discourse power, and innovate more forms of liquefied natural gas trade cooperation while ensuring domestic energy security and stable supply. It is reported that by the end of 2024, the order volume undertaken by China's shipbuilding industry will reach 65% to 70% of the world's total, and the order volume of liquefied natural gas transport ships will exceed 30% of the global total. (Lai Xin She)

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