In 2024, the global shipbuilding industry is undergoing a new round of cyclical growth. In the first 11 months of 2024, the order books of shipyards worldwide contained 2,159 vessels with a deadweight tonnage of 152.1 million dwt and a cgt volume of 60.3 million CGT, surpassing the average level of the past decade by 71%. The total newbuilding orders for the entire year are projected to reach the highest level since 2007 (94 million CGT). The significant growth in orders is driven by the strong performance in various ship types, fleet renewal demands, and competition for available shipyards over longer delivery periods.

Notably, China continues to strengthen its dominance in the global shipbuilding industry, having secured nearly 70% of newbuilding orders. Chinese shipyards received 1,518 newbuilding orders (115.9 million dwt, 41.8 million CGT), representing a 53% year-on-year increase in deadweight tonnage and a 57% increase in cgt volume. Of 60.3 million CGT of new ship orders, 69% went to China. The share of Chinese shipyards rises from 59% last year.

In addition to the strong competitiveness in order intake, Chinese shipyards have impressive order backlogs and delivery volumes. On December 18, the “GreenEnergy Pearl”, a 174,000 cubic meter large liquefied natural gas (LNG) carrier designed and built independently by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd., a subsidiary of China State Shipbuilding Corporation, was named and delivered at Changhai Island, Shanghai, eight months ahead of schedule. This marks the eighth LNG carrier delivered by the company this year, setting a new record for annual LNG carrier deliveries by Chinese shipyards once again.

Chinese Major LNG Insulated Panel Manufacturers

In 2018, Yoke Technology obtained certification for reinforced PU insulated panels used in LNG containment systems from France’s GTT, making it the largest supplier of LNG insulated panels in China, with a market share of nearly 90%. The company has established close strategic cooperative relationships with major yards such as Hudong-Zhonghua Shipbuilding, CSSC Jiangnan Shipyard, and Dalian Huarui Heavy Industry. In March 2024, NMG Composites was awarded two reinforced foam certifications for Mark III and NO 96 L03+ by GTT, marking its entry into the LNG insulation material sector.

China’s LNG Imports Growth Continues to Boost Demand for LNG Transportation and Onshore Storage Facilities

China imported 69.61 million tonnes of LNG during January-November 2024, representing a 10.7% year-on-year growth, according to China Customs Statistics. The growth rate maintains the double-digit level seen in 2023 (12.6%), further boosting the demand for a range of transportation and storage facilities such as LNG carriers and onshore LNG storage facilities. It also contributes to the continuous growth in demand for polyurethane insulation materials, such as reinforced PU insulated panels. In 2023, China added 18.8 mtpa of new LNG receiving capacity, raising its total receiving capacity to 116 mtpa, setting a new record high. As of December 2024, China’s total LNG receiving capacity has increased to 211.5 mtpa.