Press Release

The Emergence of China as a LNG Shipbuilder
Shanghai, China, July.24th, 2007

"China's first LNG carrier is expected to be delivered in the end of November. " Mr. Yan Weiping, General Manager of China LNG Shipping (Holding) Company said yesterday. It will mark another milestone for China's LNG industry and indicate that China has raced into the competition of LNG shipbuilding market.
The first vessel, with 147,000 cubic meters, or nearly 70,000 tons, of LNG storage capacity, is built by Hudong Zhonghua Shipyards, serving the pioneering Guangdong Dapeng LNG project. Nowadays, LNG vessel is generally divided into two types: South Korea's Memberane type and Japan's Moss type. "Memberane or Moss type, it's a cost concern rather than a technology choice" Mr. Yan said when asked which one is representing the future. Actually cost is where South Korean shipbuilders have out-done their Japanese counterparts, and the market is increasingly competitive, especially with China entering the market, speculated by many industry people.
Currently China has around 10 LNG terminals in planning with 3 securing LNG supplies and 1 in operation. Demand for LNG vessels is expected at 25 in the next few years. Apart from Hudong Zhonghua Shipyards, Jiangnan Shipyards, Dalian New Shipyards and Nantong COSCO KHL Ship Engineering have all plugged into the booming and high value added LNG shipbuilding industry. Recently Hudong Zhonghua Shipyards has been awarded a 6th LNG vessel building contract.
It is estimated that a total of 38 new ships are scheduled for delivery in 2007, 50 in 2008, 48 in 2009, 14 in 2010 and one in 2011. There's no wonder LNG shipbuilding will draw attention from the LNG industry this year. On Nov.8th & 9th, the 3rd annual Asia Gas Congress 2007, previously known as China Gas Summit 2005 & 2006, will have a dedicated stream focusing on LNG shipping and shipbuilding. Strategic issue of competition landscape with the emergence of China as a LNG shipbuilder will be discussed and new vessels building programs on track will be reviewed. In addition, technological advancements including future propulsion system, improved memberane containment system, ice-breaking LNG carriers and CNG carriers will be briefed and debated to shed light on the future of LNG shipbuilding industry. Main speakers will be the senior executives from China State Shipbuilding Corporation (CSSC), China LNG Shipping Holdings, LNG Shipping Solutions and Gaztransport & Technigaz (GTT), etc.
Asia Gas Congress 2007, the most definitive gas event in Asia, will convene on 7th to 9th Nov. at the Hotel Nikko New Century Beijing in China. Building on the huge success in the past two years, the event has been growing into an industry elite gathering by expecting about 500 participants this year and looking into the whole Asian markets including the established markets like Japan, Korea and Taiwan, the growing market with great potential China and India and the emerging markets like Thailand and Singapore. And it is the only event focusing on whole gas value chain ranging from supply demand dynamics, LNG terminal and pipeline construction, LNG shipping & shipbuilding and downstream utilization.

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