SunSirs: China's LNG Carrier Sets New World Record, Domestic Invar Steel Plays Key Role

On December 19, the 174,000-cubic-meter LNG carrier Yuanhai Oasis, built by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. under China State Shipbuilding Corporation, was named and delivered in Shanghai three and a half months ahead of schedule. Its construction took just 16 months—the fastest global turnaround for vessels of this type.

While setting a new global speed record, Hudong-Zhonghua also achieved a domestic milestone: completing 13 and delivering 11 large LNG carriers this year—both figures reaching historic highs and fulfilling the goal of doubling LNG carrier output during the 14th Five-Year Plan period.

LNG carriers, alongside aircraft carriers and large cruise ships, are hailed as the three “crown jewels” of the global shipbuilding industry. These vessels serve as “super-sized refrigerated trucks at sea,” transporting liquefied natural gas at -163°C. They represent quintessential high-tech, high-reliability, and high-value-added ships.

In 2008, Hudong-Zhonghua delivered China's first LNG carrier, the “Dapeng Hao.” Its construction spanned 40 months, with the entire process from project initiation to delivery taking a decade. Despite achieving this breakthrough, China's LNG carriers still required improvements in construction efficiency and performance metrics.

In 2020, Hudong-Zhonghua emerged victorious in the Qatar Petroleum LNG carrier construction project bidding—regarded as the “pinnacle battle of the shipbuilding industry”—signaling that China's LNG carrier performance had matched international competitors. Subsequently, in November 2023, the shipyard delivered a 174,000-cubic-meter LNG carrier in just 17 months and 8 days, achieving its first lead in construction efficiency.

As China's LNG carriers achieved world-leading construction metrics, major orders followed in succession. Currently, Hudong-Zhonghua holds over 50 LNG carrier orders, with production scheduled through 2029. The company initiated a capacity doubling plan in 2023, setting a record of delivering six LNG carriers that year—a milestone surpassed this year with 11 deliveries.

Even after achieving leadership, China's LNG carriers continue to upgrade. The “Yuanhai Oasis” is one of the LNG carriers utilizing domestically produced Invar steel, achieving the highest level of localization to date. This marks a new milestone in the “domestic ships built domestically” initiative.

Invar steel is the core material for the liquid cargo tanks—the critical component of LNG carriers. This alloy can withstand ultra-low temperatures of -163°C, but its production is highly challenging.

To develop domestic Invar steel, Hudong-Zhonghua collaborated with Baowu Special Steel, investing over a decade from R&D to certification. Ultimately, Baowu Special Steel became the world's second qualified supplier capable of providing marine-grade Invar steel.

Currently, the LNG carrier market is booming, with global demand for Invar steel outstripping supply. The emergence of domestically produced Invar steel has resolved this challenge. More importantly, while European imports incurred high freight costs and lengthy delivery times, domestically produced Invar steel enables precise supply aligned with production schedules. Rapid replenishment during construction damage further enhances lean management. Combined with digital and intelligent empowerment, Hudong-Zhonghua set a new construction record of just 16 months.

As the “chain leader” in China's LNG industry chain, Hudong-Zhonghua has comprehensively strengthened materials, equipment, technology, processes, and standards in recent years. It actively coordinates upstream and downstream partners to build an industrial cluster system. The company has expanded domestic supporting enterprises from over 20 to more than 130, creating a supporting ecosystem worth hundreds of billions of yuan and generating a market output value of tens of billions. By firmly controlling core supply chain technologies, Hudong-Zhonghua has successfully cultivated an “industrial oasis” for domestic LNG shipbuilding.

From its earlier struggles to today's leadership position, Hudong-Zhonghua has achieved a remarkable transformation—evolving from “a decade to forge one sword” to “a year to forge ten swords.” China's LNG ships have also staged a remarkable comeback, with their global market share surging from under 5% in 2008 to over 30%.

The Yuanhai Oasis, the second vessel built by Hudong-Zhonghua for COSCO Shipping and Sinochem, measures 295 meters in length, 45 meters in beam, and 26.25 meters in draft, with a speed of 19.5 knots. Upon entering service, it will further bolster China's independent transport capacity for clean energy and enhance the nation's bargaining power in LNG imports.

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