German shipowner John T Essberger is looking for a shipyard in China to build 10 methanol-fueled chemical tankers

Recently, German chemical tanker owner John T Essberger is looking for a shipyard for 10 methanol dual-fuel chemical tanker newbuildings. Sven Schwarz, chief executive of Europe's largest chemical tanker owner in the coastal trade, said recently that it was approaching shipyards to order ships ranging from 7,500 to 13,000 dwt. The 5th 2024 Shanghai Forum on the Innovation and Development of Methanol Fuel-powered Ships and Methanol Industry, the 2024 Shanghai Forum on Green and Intelligent Ship Technology, and the 4th 2024 Shanghai Forum on Carbon Capture, Storage, Transportation and Utilization Industry Innovation will be held in Shanghai from September 25 [email protected] to 27 [email protected], 2024

The 5th 2024 Shanghai Forum on Methanol Fuel Carriers and Methanol Industry Development will be held on September 25-27

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Sven Schwarz told the media last week that if we can find a shipyard with the right price and delivery time, then we will order up to 10 vessels.

Sven Schwarz said that about 20 to 25 percent of the ships in the fleet are ageing, with an average age of more than 20 years, so it is necessary to renew the existing fleet. These high-spec ships to be ordered will be used to replace older ships in the fleet.

The stainless steel tankers will be operated by E&S Tankers, which manages 47 vessels ranging in size from 2,800 dwt to 11,300 dwt.

E&S Tankers is a joint venture between the John T. Essberger Group and Stolt Tankers established in 2020 to operate ships in Europe.

Shipyard selection puzzle

On June 28, the John T. Essberger fleet added two new chemical tankers, the Eberhart Essberger and the Heinrich Essberger, both equipped with LNG dual-fuel propulsion systems. These two vessels are the last two of the four series of LNG dual-fuel powered chemical tankers ordered by John T. Essberger at China Merchants Industry Yangzhou Jinling when he launched the fleet renewal program in 2021.

John T. Essberger's next series will be equipped with a methanol dual-fuel propulsion system.

Sven Schwarz says flexibility is key if we order a new ship. "We are preparing for the dual fuel of marine methanol. This is the way we have to go. ”

It is understood that John T. Essberger is currently in talks with shipyards in China, Japan, South Korea and Turkey, and shipyards are expected to make offers in the coming weeks.

But Sven Schwarz said John T. Essberger's design was complex, and it wasn't easy to find a shipyard in Japan. "Because Japan is building ships to its own specifications, this is a problem for us."

"We are in the chemical supply chain and we have to operate these vessels for our customers for the next 25 years. That's why we can't lower the specs. Sven Schwarz said.

In addition, he said that the delivery date is also an issue, and some shipyards have already filled the slipways for 2027 and 2028.

Chinese shipyards are full of orders

According to Clarkson's data, in the current field of chemical tanker construction of 10,000 dwt and above, the top four are Yangzhou Jinling, Wuhu Shipyard and Fujian Southeast Shipbuilding.

✦ China Merchants Industry Yangzhou Jinling

As a subsidiary of China Merchants Industry Group Co., Ltd., Yangzhou Jinling focuses on the construction of small and medium-sized chemical tankers and gas carriers, and occupies a leading position in the global chemical tanker construction market.

According to Clarkson's data at the end of March, Yangzhou Jinling chemical tanker has 43 orders in hand, plus the latest order in April, it has reached 53, and the delivery date has been scheduled until 2028.

The latest order signed is the construction contract for 5+5 25,900 dwt chemical tankers signed on April 28, 2024 with SC International FZE, a wholly-owned subsidiary of Inner Mongolia Junzheng Energy and Chemical Group Co., Ltd., one of China's largest liquid chemical tankers, and the new ships will be delivered between 2026 and 2028.

In terms of methanol fuel, in addition to a number of orders, the 15,000-ton sail/methanol new generation hybrid chemical tanker built by Yangzhou Jinling for Swedish shipowner Terntank also won the "Next Generation Ship Award" at the Norwegian Shipping Show. This type is the 7th low-carbon and environmentally friendly ship cooperated by Yangzhou Jinling and Terntank, which has made additional innovative improvements on the basis of the experience of the first 6 15,000-ton dual-fuel chemical tanker series ships successfully delivered in Yangzhou Jinling, using methanol dual-fuel main engine, with advanced battery system for peak shaving and valley filling, and equipped with sail system. The use of methanol can reduce carbon emissions by 40%, and the addition of a sail system will reduce emissions by a further 8%, significantly reducing the environmental impact. Due to the low-carbon and decarbonization potential of methanol, the effective design of the ship energy efficiency index EEDI is between 16%~40%, which meets the requirements of the third phase in 2025.

It is worth mentioning that just yesterday (June 28), Yangzhou Jinling held the acceptance and delivery ceremony of the first methanol fuel supply unit. The project was signed in June 2023 and was the first order for a real methanol fuel supply unit from a domestic manufacturer at that time. The successful delivery of the methanol fuel supply unit has promoted the localization process of marine high-tech equipment, ensured the independent controllability and continuous innovation ability of technology, and demonstrated the determination and ability of Yangzhou Jinling in building a technology-based manufacturing enterprise and promoting the green energy equipment manufacturing industry.

✦ Wuhu Shipyard

According to Clarkson data, by the end of 2023, Wuhu Shipyard ranked first in the world in terms of orders for small and medium-sized chemical tankers. Delivery is scheduled until 2027.

The latest order is two 18,500 dwt chemical tankers signed by EGPN Bulk Carrier in June 2024, which are expected to be delivered in 2027.

In terms of methanol-fueled ships, in January 2024, Wuhu Shipyard signed a contract with Intercontinental Shipping Group for the construction of a 18,500-ton methanol reserved green chemical tanker and signed a strategic cooperation agreement. According to the agreement, Wuhu Shipyard will build a 18,500-ton methanol reserved green chemical tanker for Intercontinental Shipping, which belongs to the "rising star" in the field of chemical tankers, and is another masterpiece of Wuhu Shipyard in the field of green and intelligent chemical tankers, and it is also a popular ship type launched by Wuhu Shipbuilding to the market.

✦ Fujian Southeast Shipbuilding

Since the beginning of this year, Fujian Southeast Shipbuilding has received a number of orders for 18,500 dwt chemical tankers, and has become a major exporter of 18,500 dwt chemical tankers built in Fujian.

Together with the 11 18,500 dwt chemical tankers of the latest Singapore shipowners, Southeast Shipbuilding has held orders for 17 chemical tankers so far, and the delivery schedule is scheduled until 2026. According to Clarkson's data at the end of March, in this field of ship types, Southeast Shipbuilding currently ranks third in the world in terms of hand-held orders, second only to China Merchants Industry Yangzhou Jinling and Wuhu Shipyards.

✦ Wuchang Shipbuilding

According to Clarkson data, as of May 2024, Wuchang Shipbuilding has 22 existing chemical tanker orders, ranking fourth in the world, and the delivery schedule is scheduled until 2028.

The latest order is the construction contract for 5+5 dwt chemical tankers signed with the company's wholly-owned overseas subsidiaries SC International FZE and JZ Logistics Holding (Overseas) Co., Ltd. in May 2024. According to the contract, this batch of new ships will be completed and delivered within 2~4 years from the date of signing the shipbuilding contract.

In terms of methanol fuel, just today, Xingtong's second 25,900 dwt methanol dual-fuel stainless steel chemical tanker "Xingtong Seal" was successfully started construction at Wuchang Shipyard. The ship is the second of the two 25,900 dwt methanol dual-fuel stainless steel chemical tanker construction contracts signed between Wuchang Shipbuilding and Xingtong Co., Ltd. in August 2023.

In recent years, Wuchang Shipbuilding has conformed to the new trend of green, low-carbon and intelligent shipping development, fully grasped market opportunities, deeply cultivated the oil-chemical carrier market, focused on technological innovation and process optimization, established a mature chemical tanker development and construction process system, built and delivered a series of small and medium-sized chemical tankers for domestic and foreign customers, and gradually built chemical tankers into one of the company's main ship types.

Edit source: China Ship Survey