Secures six VLAC orders in a row! Hengli Heavy Industry achieves another breakthrough in high-value-added vessel types.

Recently, Hengli Heavy Industry has, within the span of a week, successfully signed and brought into effect construction contracts for six very large ammonia carriers (VLACs), including four vessels with a capacity of 93,000 cubic meters and two with 88,000 cubic meters. This milestone underscores Hengli Heavy Industry’s significant breakthrough in the high-value-added gas vessel sector.

Hengli Heavy Industry has not disclosed the shipowner’s identity or the contract price. For reference, Clarkson data indicate that the current price of a new 88,000–93,000 cubic meter VLAC is approximately US$115 million (about RMB 778 million), down 5% from US$120.5 million at the same time last year. Based on this estimate, the total value of the six VLAC orders would amount to US$690 million (approximately RMB 4.669 billion).

Earlier this month, market sources reported that three Greek shipowners placed orders with Hengli Heavy Industries for a total of eight 93,000-cubic-meter VLACs: Evalend Shipping ordered four, while Dynacom, controlled by Greek shipping magnate George Procopiou, and Capital Maritime & Trading, under Evangelos Marinakis, each placed orders for two. This marks the first time Hengli Heavy Industries has secured orders from Greek shipowners for very large liquefied gas carriers.

Hengli Heavy Industry is one of the few domestic shipyards capable of building ultra-large liquefied gas carriers. According to reports, in September 2024, Hengli Heavy Industry received an order from its parent company, Hengli Group, for four 93,000-cubic-meter VLACs—the largest of their kind worldwide—making it the second private Chinese shipbuilder, after Yangzijiang Shipbuilding, to enter the ultra-large liquefied gas carrier market. These four VLACs have since been resold this year: two were sold to the Dubai-based shipowner Emarat Maritime, while the other two were sold to an anonymous owner.

In April this year, Emarat Maritime placed an additional order with Hengli Heavy Industries for two 93,000-cubic-meter VLACs, scheduled for delivery in 2028.

Leveraging Hengli Group’s robust financial strength, Hengli Heavy Industry has in recent years consistently adopted a “order‑first, sell‑later” business model: the company makes large‑scale, upfront investments to build new vessels and then resells them to global shipowners at opportune moments based on market conditions. Thanks to shorter delivery cycles and more competitive pricing, these ships have earned widespread acclaim from overseas shipowners.

On June 23 this year, Hengli Heavy Industry’s first 93,000-cubic-meter VLAC was successfully launched, becoming the world’s first VLAC built on a slipway and launched without incident, thereby breaking the industry’s long-standing convention of constructing large gas carriers exclusively in drydocks. The vessel features in-house production of its liquid cargo tanks and is equipped with an LPG dual-fuel engine developed independently by Hengli Heavy Industry. From the core liquid cargo tanks to the propulsion system, nearly all major components are now domestically sourced, giving the ship a distinct competitive edge in terms of delivery timelines and construction costs.

The recent award of six VLAC orders not only underscores the further expansion of Hengli Heavy Industry’s order book but also marks a strategic breakthrough in high‑value‑added vessel segments. The company is accelerating the diversification of its order portfolio, shifting from traditional product and bulk carriers to higher‑value vessels such as gas carriers, signaling that its gas carrier fleet development has entered a new phase of large‑scale growth.

According to Clarkson’s data, as of now, Hengli Heavy Industries holds orders for a total of 361 vessels, amounting to 61.67 million deadweight tons and 13.48 million CGT. Measured in CGT, the company ranks first among single‑yard shipbuilders worldwide, with its portfolio including 135 oil tankers, 112 bulk carriers, 100 container ships, and 14 VLACs, with delivery schedules extending through 2030.