Hudong-Zhonghua Secures Contract to Build 12 Ultra-Large Crude Carriers

Deep News06-02 14:34

Hudong-Zhonghua Shipbuilding (Group) Co., Ltd., a subsidiary of the China State Shipbuilding Corporation Limited (CSSC), in collaboration with China Shipbuilding Trading Co., Ltd., has officially signed a contract with Greece's Dynacom company for the construction of 12 ultra-large crude carriers (VLCC). The total contract value is approximately ten billion Chinese yuan, with a portion to be settled in the Chinese currency.

The 12 VLCCs covered by this agreement will utilize a new-generation 307,000-ton VLCC design developed by CSSC's No. 708 Research Institute. The vessels adhere to standard VLCC principal dimensions while integrating the latest advanced technologies and design specifications.

The ship type features an optimized hull form adapted to the client's specific port requirements. Combined with the application of a high-efficiency propeller and energy-saving devices, it promises industry-leading fuel economy. An innovative structural design achieves weight reduction while also considering construction and installation convenience.

The vessels will be equipped with WinGD main engines and will install scrubbers along with high-pressure selective catalytic reduction (SCR) systems to meet the latest International Maritime Organization (IMO) environmental emission standards. The design incorporates a mature and reliable cargo oil pump system, and the cargo tanks will include an additional heating system to meet the shipowner's specific operational needs.

It is reported that construction of the first vessel in this project is scheduled to commence in October 2027. During the project's advancement, China Shipbuilding Trading leveraged its platform advantages to coordinate closely with Hudong-Zhonghua and the shipowner to secure favorable commercial terms regarding price, penalty clauses, and guarantee conditions, ensuring the project's smooth implementation.

Furthermore, against the backdrop of a strengthening Chinese yuan, China Shipbuilding Trading collaborated with Hudong-Zhonghua to negotiate with the shipowner, successfully securing partial settlement in Chinese currency. This arrangement for dual-currency (yuan and US dollar) settlement with an international client helps manage the project's foreign exchange risk and aims to maximize its overall benefits.

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