China Overtakes South Korea in LNG Carrier Shipbuilding Market
China's shipbuilding industry has surpassed South Korea's in the liquefied natural gas (LNG) carrier market for the first time, according to a recent report by shipbroker Banchero Costa. The shift is attributed to insufficient capacity at South Korean yards and the growing demand from domestic Chinese shipowners.
In the first half of 2026, Chinese shipbuilders secured orders for 34 LNG carriers, compared to 32 won by their South Korean counterparts. This marks a significant change in the market dynamics, as South Korean shipbuilders had dominated the sector between 2022 and 2025.
The key players in this trend are Jiangnan Shipyard and Hudong-Zhonghua, both subsidiaries of China State Shipbuilding Corporation (CSSC), which have each won orders for over ten new vessels this year. Clients include major shipping companies such as COSCO Shipping, ADNOC L&S, Eastern Pacific Shipping (EPS), TMS Cardiff Gas, and MISC.
Banchero Costa's Head of Research, Ralph Leszczynski, attributes the shift to insufficient capacity at South Korean yards, which currently have only four shipbuilders capable of building LNG carriers. In contrast, China has six shipyards with this capability, including Hengli Heavy Industries, which signed a patent cooperation agreement with GTT in early 2025.