Jiahua Energy is expanding its ship ownership goals by planning to invest up to $165 million in a hydrocarbon carrier with a capacity of 102,000 cubic meters at Jiangnan Shipyard.
Project Details and Financing
The company, which is listed on the Shanghai Stock Exchange, has received board approval for this project, with Jiangnan Shipyard and China Shipbuilding Trading introduced as parties to the contract. The intended ship is expected to be completed by June 30, 2030.
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This investment marks Jiahua's second gas carrier project in over two months and the company's first venture into large international gas carriers. Jiahua intends to use this ship primarily for ethylene imports for PVC production while also retaining the capability to transport ethylene. Any additional capacity may be offered to Chinese petrochemical companies and traders.
Reducing Dependence on Charter Loads
Jiahua Energy operates two PVC/VCM production units with a combined annual capacity of 600,000 tons and is working to reduce its dependence on charter loads and fluctuations in raw material transportation costs.
This new project follows an order last August for a 35,000 cubic meter hydrocarbon carrier at CIMC Sinopacific Offshore & Engineering, which included an investment of up to 750 million yuan (approximately $111 million). The previous ship, which is expected to be completed by 2029, is being developed through Jiahua's partnership with its subsidiary, Meifu Port & Storage, and other investors.
Jiahua's new project will be funded through internal resources and other financing. These efforts demonstrate the company's strong commitment to advancing in shipping and reducing costs in its supply chain.
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