Gas
China outpaces South Korea in monthly LNG carrier orders
Chinese shipyards secured more large liquefied natural gas carrier contracts than South Korean competitors in October 2026, marking a significant market shift.
Key points
- Chinese shipbuilders captured 71.4% of the monthly market in October 2026.
- Competitive pricing and available shipyard capacity drove the shift.
- Global demand for large LNG carriers has increased substantially year-over-year.
According to reporting by iMarine, the global shipbuilding sector has witnessed a notable transition as Chinese shipyards surpassed their South Korean counterparts in monthly contracts for large liquefied natural gas (LNG) carriers for the first time.
Shifting market dynamics
Clarksea data indicates that global shipowners contracted seven large LNG vessels in October 2026. Chinese builders secured five of these units, while South Korean yards obtained two, giving respective market shares of 71.4 per cent and 28.6 per cent for the month. Notable transactions included an agreement by the Malaysia International Shipping Corporation for five carriers with Hudong-Zhonghua, alongside orders placed with Samsung Heavy Industries by Japanese operator Kawasaki Kisen Kaisha.
When examining the broader period from January to October 2026, global buyers ordered 76 large LNG carriers, representing a substantial rise compared to the 17 vessels registered during the corresponding timeframe of the previous year. South Korean shipbuilders accumulated 44 of these recent contracts, whereas Chinese yards secured 32. However, this narrows the gap significantly from 2025 figures, where Chinese builders captured only a minor share of annual orders.
Drivers of industrial growth
Industry analysts attribute the faster order intake in China to competitive pricing below standard market benchmarks and readily available construction capacity. Major entities such as Hudong-Zhonghua and Jiangnan Shipyard have pursued capacity expansion initiatives to enhance mass production capabilities. Furthermore, the number of operational Chinese shipyards capable of delivering completed LNG carriers has expanded to five, with additional private operators potentially entering the segment.
South Korean maritime executives have acknowledged these competitive pressures during corporate earnings calls, noting that pricing advantages and domestic cargo owner partnerships support the steady accumulation of contracts by Chinese yards. While industry observers in South Korea emphasize that technical reliability remains a core strength of their domestic sector, they stress the importance of ongoing technological advancement and portfolio diversification.
Why it matters
The rising manufacturing capacity for specialized maritime transport holds clear implications for global energy supply chains and infrastructure investors. With the Henry Hub gas spot price recorded at 2.63 US dollars per MMBtu by the US Energy Information Administration in November 2026, the economics of gas delivery rely heavily on efficient vessel availability and capital expenditure.
For emerging energy producers and international investors across Africa and other developing regions, shifts in the global shipbuilding market can alter vessel acquisition timelines and project logistics. As more shipyards achieve technical certification and expand output, the increased competition may influence charter rates and fleet renewal strategies for worldwide LNG trade.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
3.0% of electricity in China came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
