14 Global First Orders Changed! Involving Chinese Shipyards! Shipping Giant Decides to Switch to LNG

Singapore-based shipowner Eastern Pacific Shipping (EPS) has decided to convert all 14 ammonia dual-fuel bulk carriers ordered from Qingdao Beihai Shipyard to LNG dual-fuel propulsion.

According to foreign media reports, EPS confirmed that its 14 210,000-deadweight-ton Newcastlemax bulk carriers under construction in China will adopt LNG dual-fuel propulsion systems instead of the originally planned ammonia dual-fuel engines. The company described this decision as a tactical adjustment reflecting the technical, commercial, and regulatory challenges facing the shipping industry's energy transition.

EPS's newbuildings were originally slated for large second-generation ammonia engines. However, technical immaturity coupled with regulatory frameworks, bunkering infrastructure limitations, and charterer cost concerns prevented their planned deployment.

Nevertheless, EPS remains committed to deploying ammonia fuel systems on its four Very Large Ammonia Carriers (VLACs) under construction at both Jiangnan Shipyard and South Korea's HD Hyundai Heavy Industries. These newbuilds will feature Everllence's first-generation 60-cylinder ammonia dual-fuel engines, with deliveries expected to commence in 2027. Additionally, the company is advancing newbuild projects for ammonia-fueled container ships and car carriers.

EPS CEO Cyril Ducau stated: “Our ultimate goal is to be ready when the market is ready. After extensive research on ammonia-fueled vessels by our team and partners, we believe it is prudent to focus more resources on the VLAC project, allowing shipyards and engine manufacturers to refine the solution before large-scale deployment in other shipping segments.”

He noted that the infrastructure, supply chains, and regulatory frameworks for ammonia fuel are still under development—a natural phase in the adoption of any new fuel. “Therefore, we are pursuing a phased approach, accumulating experience through memorandums of understanding, industry collaborations, and project development.”

It is understood that EPS signed a 3+3 vessel order for 210,000-ton Ammonia DF (dual-fuel)/DF Ready bulk carriers with Beihai Shipyard in September 2023, marking their inaugural collaboration. Building on this foundation, EPS has subsequently placed orders for 14 additional 210,000-ton ammonia dual-fuel bulk carriers with Beihai Shipyard.

These represent the world's first dual-fuel ammonia-powered bulk carriers. While Beihai Shipyard has not disclosed the newbuild price, foreign media reports indicate each vessel costs approximately $80 million, totaling $1.12 billion (approximately RMB 7.974 billion) for all 14 ships. The first vessel is expected to be delivered in mid-2026.

Co-developed by Beihai Shipyard and China Ship Design Center Co., Ltd. (CSDC), the vessels feature an overall length of 300.00 meters, a beam of 50.00 meters, a depth of 25.20 meters, with a structural draft of 18.40 meters and a service speed of 14.0 knots. It meets the Energy Efficiency Design Index (EEDI) Phase III requirements and is pre-engineered for ammonia fuel. Future retrofitting will include ammonia-fueled main engines and two 3,000-cubic-meter Type C tanks for ammonia fuel storage, ensuring the vessel can achieve zero-carbon operations throughout its lifecycle using ammonia fuel.

According to the plan, these new vessels will utilize ammonia dual-fuel main engines supplied by MAN Energy Solutions (now renamed Everllence). When EPS signed the initial order in 2023, this engine was still under development, with MAN indicating it would deliver the first batch of two-stroke ammonia-fueled engines for the newbuilds by the end of 2024. However, the engine's unavailability prompted EPS to switch all 14 vessels to LNG dual-fuel propulsion.

EPS, one of the world's largest independent shipowners, boasts over 60 years of excellence in the shipping industry. Headquartered in Singapore, it employs 6,000 seafarers and over 450 shore-based staff, managing a diversified fleet of more than 270 vessels. This fleet includes bulk carriers, container ships, car carriers, tankers, product tankers, LPG carriers, and LNG carriers. The fleet boasts a total deadweight tonnage of 28 million tons with an average vessel age under 10 years, including over 80 dual-fuel vessels.

Since 2021, EPS has been active in the newbuilding market, placing orders for over 140 new vessels across Chinese, Japanese, and Korean shipyards. According to Clarkson data, EPS currently has 108 vessels under construction, encompassing container ships, car carriers, liquefied gas carriers, and oil tankers. Upon completion of all newbuildings by 2029, EPS's fleet size is projected to exceed 300 vessels.

Notably, while EPS is changing its fuel choice, another shipowner ordering ammonia-fueled bulk carriers from North Sea Shipbuilding—Belgium's CMB.Tech—has decided to stick with ammonia fuel. CMB.Tech currently has 10 ammonia-fueled Newcastlemax bulk carriers under construction at North Sea Shipbuilding, scheduled for delivery between 2026 and 2027.

CMB.Tech's newbuilds will be equipped with WinGD-designed ammonia-fueled dual-fuel engines. WinGD CEO Dominik Schneiter stated that the company's first large-bore X72DF-A engine is ready for testing in Qingdao during the fourth quarter of this year, with delivery to the shipyard for installation following successful testing.

According to DNV's latest white paper, ammonia fuel has progressed from concept to early implementation within just five years, gradually emerging as a low-carbon greenhouse gas alternative for deep-sea shipping. Since 2020, ammonia has achieved significant advancements in regulations, technology, and infrastructure for marine fuel applications. Safety frameworks have evolved from risk-based approvals to interim guidelines from the International Maritime Organization (IMO) and annually updated classification rules. Technical maturity continues to advance—currently, 39 ammonia-powered vessels are on order, commercial engines have been launched, and the first fuel demonstration on an actual ship has been completed. Although blue and green ammonia production remains low at present, confirmed plans will increase annual production to 14 million tons by 2030. Bunkering infrastructure is also emerging globally following trials at key ports, including Singapore and Rotterdam.