Page 11 - AsianOil Week 24 2022

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Chinese shipyards return to

work following lockdowns

PERFORMANCE CHINA’S leading shipyards are returning to pointed to a complete supply chain, a mature
work as lockdowns are eased in Shanghai. production line and self-developed core technol-
Indeed, those lockdowns contributed to South ogies that had been built up over years as factors
Korea overtaking China as the world’s top ship- providing an advantage to Chinese shipyards.
builder by orders. During the recent lockdowns, Shanghai ship-
In May, China won 34% of new orders, com- yards operated under closed-loop management
pared with 48% for South Korea and followed by and stockpiled necessary materials in advance,
Japan’s 17%, according to Business Korea. Some enabling them to ensure smooth production and
analysts now expect China to reclaim the top delivery during that time, according to Wu.
spot by the second half of this year. The order book for Chinese shipbuilders is
South Korea also benefited from orders still down nearly 50% for the year to date com-
for LNG carriers, which came in as Chinese pared with 2021. China reported just 2.3mn
shipyards were having to cut production. tonnes deadweight (dwt) for orders in May.
Now, though, the three Shanghai-based ship- Orders for 2022 to date totalled 17.7mn dwt at
building conglomerates, Jiangnan Shipyard, the end of May, up from 15.4mn dwt in April.
Hudong-Zhonghua Shipbuilding (Group) If the trend continues, it will confirm that a
and Shanghai Waigaoqiao Shipbuilding, have rebound is already underway.
resumed their operations. Meanwhile, global Globally, in the first five months of 2022, new
demand for containerships and LNG carriers in ship orders stood at 16.25mn compensated gross
particular is expected to keep growing, benefit- tonnes (CGT). China accounted for 7.16mn
ing shipyards in both countries. CGT of this, or 247 ships, with a market share
“Shanghai’s shipbuilders are back to more of 44.1%. According to Clarksons Research, this
than 70% capacity utilisation,” an independent represents a year-on-year decrease of 3.2 per-
shipping industry analyst from Shanghai, Wu centage points, with South Korea taking a 45.2%
Minghua, told the Global Times this week. Wu market share and rising to the top spot.™

CPC receives Taiwan’s first

cargo of carbon-offset crude

ENERGY TAIWAN’S CPC announced on June 12 that it of carbon offset operations for emissions related
TRANSITION had received the country’s first cargo of certified to certain elective crude deliveries.
carbon-offset crude. The cargo totalled 1.05mn CPC has also started receiving car-
barrels of oil and was delivered by the trading bon-neutral cargoes of LNG in recent years,
arm of Azerbaijan’s state-owned SOCAR. with the emissions from those cargoes also
The cargo’s cradle-to-gate greenhouse gas offset using nature-based carbon credits.
(GHG) emissions had been offset with carbon Last year, the company also signed a mem-
credits certified by the Verified Carbon Standard orandum of understanding (MoU) with
(VCS). All credits had been issued less than six Taiwan Semiconductor Manufacturing Co.
years ago, with the majority derived from nature- (TSMC) on co-operation over the supply of
based projects that have additional Climate, carbon-neutral LNG.
Community and Biodiversity (CCB) accredita- These moves to receive and distribute more
tion, CPC stated. carbon-neutral oil and gas come as Taiwan tar-
The company said the emissions associated gets net-zero GHG emissions by 2050.
with the cargo had been calculated with sup- Carbon-offset cargoes are rising in popular-
port from Deloitte and Siglar Carbon, with the ity but are still rare enough for announcements
calculations then verified by Intertek Group. to be given pertaining to individual cargoes,
The entire trade was independently certified as such as the one delivered to CPC this week.
carbon neutral by Intertek and Climate Neutral However, the use of carbon offsets is not with-
Commodity, an independent commodity certi- out its critics, who point out that the process
fication specialist, CPC added. still generates emissions that would not have
The trade comes after SOCAR and CPC otherwise been generated and that need to be
signed a framework agreement on the facilitation compensated for.™

Week 24 17•June•2022 www. NEWSBASE .com P11