Nanjing Tanker Corp (NTC) has ordered an ethylene carrier at Shanghai Jiangnan-Changxing Shipbuilding.
A market source confirms the order and says the 6,500-cbm gas carrier was inked about a month ago for delivery in 2013.
One shipbuilding player says that although the parent company owns yards, it chose Jiangnan-Changxing because of tax issues.
“In China, if a state-owned shipping company orders at a state-owned yard, it is exempted from paying value-added tax [VAT] on the newbuildings,” he said. “Jiangnan also has a track record in constructing ethylene carriers.”
The market source says there is a possibility the company may add one more vessel, either a newbuilding or secondhand. “The volume of cargoes the joint venture is set to ship is very likely to increase,” he added. “During the last year, it transported around 250,000 cbm of gas.”