GTT and Cosco partner on large gas carriers and alternative fuels
Two sides have agreed to develop an in-depth partnership in the fields of LNG carriers, large ethane carriers, floating LNG units, as well as LNG or ammonia fuel solutions for VLCCs
The latest agreement with GTT has raised the prospects that Cosco could soon order large LNG carriers at its own yards
GTT, the French designer of liquefied natural gas containment systems, said it has signed an agreement with Cosco Shipping to collaborate on developing large gas carriers and alternative fuel systems.
The deal — signed with Cosco Shipping LNG Investment (Shanghai) and Cosco Shipping Heavy Industry — covers a partnership in building LNG carriers, large ethane carriers, floating LNG units, a well as LNG or ammonia fuel solutions for very large crude carriers.
“Additionally, this agreement aims to foster closer collaboration between their technical divisions to promote the application of GTT’s membrane technology in the above fields,” the companies said in a statement.
GTT and Cosco Shipping (Qidong) Offshore, a subsidiary of CSHI, penned a technical assistance and license agreement in November 2023, allowing the Chinese yard to adopt GTT’s technologies for constructing LNG carriers or offshore LNG units.
For years, South Korean builders dominated the large LNG carrier market, with Hudong-Zhonghua Shipbuilding as the only experienced Chinese shipyard in this sector.
That changed in 2022, when Jiangnan Shipyard, Dalian Shipbuilding Industry Co, China Merchants Industry Holdings, and Yangzijiang Shipbuilding secured orders after signing agreements with GTT.
CSHI has yet to obtain contracts for large LNG carriers, but the involvement of Cosco Shipping LNG Investment (Shanghai) as a shipowner this time suggests the Chinese state conglomerate may soon place such orders at its own shipyards.
The agreement also likely covers annual inspection and repair of LNG carriers, marking an expansion of the collaboration to include post-construction operational and maintenance support, Omm Capital executive director Wilson Liu told Lloyd’s List.
GTT has continued to expand its presence in China. On January 17, GTT signed a strategic co-operation agreement with China Offshore Engineering & Technology to develop floating LNG facility and floating storage regasification unit solutions.
Just five days later, China’s Hengli Heavy Industry announced it obtained a license to use GTTs’ membrane containment systems in shipbuilding.
