Hengli Heavy Industries Signs 11 Contracts for VLAC Vessels in One Week

Hengli Heavy Industries, the Chinese shipyard based in Dalian, signed contracts within the span of a week to build 11 Very Large Ammonia Carriers (VLACs) with capacities of 88,000, 90,000 and 93,000 cubic meters. The company already held the world's largest VLAC order book, a position that this new batch of contracts further consolidates.

According to Seatrade Maritime, some of the buyers in this batch were identified: SFL Corporation, controlled by Norwegian shipowner John Fredriksen, ordered two 93,000 cubic meter VLACs with delivery expected in the second quarter of 2028; British shipping company Union Maritime contracted two 88,000 cubic meter units to enter service in 2029; ADNOC L&S, the shipping subsidiary of Emirati oil company ADNOC, ordered three 93,000 cubic meter vessels with delivery expected in the second half of 2029; and Greek shipping company Dynacom added four 90,000 cubic meter units for delivery between 2028 and 2029, bringing to more than 12 the number of VLACs the company has under construction with Hengli after previously ordering eight vessels of the same type. Xinde Marine News, however, noted that the shipyard did not disclose buyers, contract values or delivery schedules for the entire package.

According to CNSS News China, approximately 40 VLAC orders were recorded worldwide during the first seven months of 2026, meaning that the 11 contracts signed by Hengli in a single week account for more than a quarter of annual global demand. The outlet noted that this is a niche segment with a total capacity of between 40 and 60 vessels, making such a concentration of orders in so short a time unusual.

Both Xinde Marine News and CNSS News China attributed part of the commercial momentum to Hengli's ability to manufacture in-house Type A cargo tanks, dual-fuel main engines and generators. According to CNSS, this integration allows the shipyard to control construction timelines without depending on external engine suppliers, whose delivery times are typically between 12 and 18 months. Xinde recalled that the shipyard delivered its first in-house-built LPG dual-fuel engine on October 28, 2025, and that in June 2026 it launched its first 93,000 cubic meter VLAC equipped with tanks and an engine built in-house.

The projections cited by the outlets themselves show the appeal of this segment: CNSS recalled that the International Energy Agency forecasts that ammonia's share as a marine fuel will rise from 8% in 2030 to 46% in 2050, and that DNV estimates seaborne ammonia trade could reach around 120 million tons per year by 2050, which would require approximately 200 VLACs. Xinde Marine News cited a similar estimate from DNV, from its gas carrier executive Martin Cartwright, who also warned about project delays, cutbacks and cancellations and stressed the need to develop vessels, terminals and storage infrastructure in parallel.