Hong Kong-based gas carrier owner CYH Shipping may be preparing to take the next major step in its fleet expansion.

Shipbuilding sources say the company has agreed a contract with China State Shipbuilding Corporation’s Jiangnan Shipyard for up to six 90,000-cbm very large gas carriers, comprising four firm vessels and two optional units.

The four confirmed ships are understood to be scheduled for delivery in 2030. No contract value has been disclosed.

Neither CYH Shipping nor Jiangnan Shipyard has publicly announced the transaction, and the order therefore remains subject to official confirmation.

Should the deal proceed as reported, it would become CYH Shipping’s first major newbuilding investment in the large gas carrier segment and would significantly expand the company’s exposure to the liquefied petroleum gas transportation market.

From its last LR2 to two VLGC acquisitions

CYH Shipping’s asset strategy has changed rapidly over the past year.

At the end of 2025, the company sold its final tanker, a 2010-built LR2 product carrier, completing its exit from the oil tanker market.

It then moved quickly into the VLGC sector.

Earlier this year, CYH Shipping acquired the 2016-built Pacific Dongying through a vessel auction for approximately $83.67 million. The vessel has a capacity of about 82,500 cbm.

The company subsequently purchased the 2015-built Cobra from US-listed Dorian LPG for around $83 million. Dorian LPG said it generated net proceeds of approximately $81.9 million from the sale.

The two transactions represented a combined investment of close to $167 million.

Xinde Marine News reported in early June that CYH Shipping’s management viewed congestion at the Panama Canal, escalating tensions in the Middle East and tightening vessel availability as important commercial opportunities.

The company also indicated at the time that it was considering further newbuilding investments.

The reported 4+2 VLGC order at Jiangnan Shipyard is therefore consistent with the fleet strategy previously outlined by the company.

CYH Shipping’s corporate website describes the company as a gas shipping operator focused on owning and operating vessels serving the LPG trade.

Its strategy is centred on building a dedicated gas carrier fleet and providing safe, reliable and efficient maritime transportation services for LPG cargoes.

The reported Jiangnan contract would extend that strategy from secondhand vessel acquisitions into the newbuilding market.

Why Jiangnan Shipyard?

For a shipowner entering the large gas carrier newbuilding market for the first time, shipyard experience, design maturity and delivery performance are critical considerations.

Jiangnan Shipyard has developed a strong position in the global VLGC sector in recent years.

Its proprietary gas carrier portfolio has expanded from earlier 84,000-cbm and 86,000-cbm designs to larger 90,000-cbm and 93,000-cbm vessels.

Beyond conventional VLGCs, Jiangnan’s product range now covers very large ammonia carriers, very large ethane carriers and 175,000-cbm LNG carriers.

The yard has become one of the few Chinese shipbuilders with a broad portfolio spanning LPG, ammonia, ethane and LNG transportation.

Earlier this month, ADNOC Logistics & Services returned to Jiangnan Shipyard with an order for four 175,000-cbm LNG carriers valued at approximately $900 million. The vessels are scheduled for delivery in 2029.

Jiangnan has also secured a series of VLAC and VLEC contracts from international owners, further strengthening its position in the high-value gas carrier market.

For CYH Shipping, working with Jiangnan would provide access to a proven vessel design, an established supply chain and a shipyard with extensive experience in large liquefied-gas carriers.

It would also reduce the technical and execution risks associated with the owner’s first large-scale newbuilding programme.

Gas carrier ordering rebounds sharply

CYH Shipping’s reported entry into the newbuilding market comes amid a broad recovery in ordering activity for large gas carriers.

According to Veson Nautical’s mid-year market report, global owners ordered 49 VLGCs, VLACs and VLECs during the first half of 2026, compared with just nine vessels during the same period last year.

Demand has been particularly strong for LPG and ammonia carriers, while owners have also shown greater interest in liquefied carbon dioxide shipping.

Several factors are supporting the new wave of investment.

US LPG exports continue to rise, while long-haul trade between North America and Asia is generating substantial tonne-mile demand.

Geopolitical tensions in the Middle East and risks surrounding the Strait of Hormuz have increased concerns over vessel availability and supply-chain reliability.

Changes in Panama Canal transit conditions have also lengthened some voyages between the US Gulf and Asian markets.

At the same time, owners are increasingly seeking vessels with greater cargo and fuel flexibility.

Many new 90,000-cbm gas carriers are being designed with LPG dual-fuel propulsion and the ability to carry ammonia, or with technical provisions for future conversion to ammonia fuel.

Such vessels can serve today’s LPG trades while retaining exposure to the future development of ammonia transportation.

Secondhand ships for immediate exposure, newbuildings for long-term scale

CYH Shipping’s expansion illustrates a practical approach for a new entrant seeking to establish a position in a strong shipping market.

Secondhand vessels provide immediate access to operating capacity and allow the owner to participate in current freight and charter markets.

Newbuildings offer a way to secure long-term fleet scale, improved fuel efficiency and future fuel optionality.

The acquisitions of Pacific Dongying and Cobra have already given CYH Shipping an operating foothold in the VLGC market.

If the reported Jiangnan order is confirmed, the company will begin building a much larger long-term fleet platform.

The 2030 delivery dates are also significant.

They reflect the continued scarcity of premium gas carrier construction slots and suggest that CYH Shipping’s investment strategy extends well beyond current freight market conditions.

From exiting the tanker sector at the end of 2025, to purchasing two secondhand VLGCs in early 2026 and now reportedly ordering up to six new vessels, CYH Shipping is undertaking a substantial transformation of its fleet.

If confirmed, the deal would introduce another privately controlled Chinese shipowner into the expanding VLGC newbuilding market, while further strengthening Jiangnan Shipyard’s customer base across the global gas shipping sector.