CHINA has made rapid progress in the past five years in its LNG tanker construction technology by securing 23 per cent of global orders in 2013, mainly due to the reform of its shipbuilding sectors.

China is expected to increase its natural gas demands into the future, as the government seeks cleaner energy sources and to reduce its dependence on crude imports. In 2012, China imported 16 million tonnes of LNG, and this is expected to rise to 77 million tonnes by 2030, according to IHS Maritime analyst Gary Li.

At present, China receives most of its LNG from Qatar, but as new markets open up or grow such as in Australia, Canada and East Africa, Beijing would want its energy state-owned enterprises to own their own LNG tanker fleet.

China only produced its first LNG tanker in 2008, but has been fighting to win orders and gain technical knowhow in the past five years.

In 2012, about 12 per cent of the global order book for LNG tankers went to China, and that increased to 23 per cent as of December 2013. However, the market is still dominated by South Korea, with Daewoo and Samsung Heavy Industries taking 68 per cent of orders in 2013.

Alongside the rush to develop and build LNG tankers, Chinese yards are also trying to win orders for other offshore LNG related vessels such as the GDF Suez Cape Ann that began operating as a LNG-FSRU ship at the CNOOC operated Tianjin LNG terminal.

Chinese yards' biggest problem is the lack of technical expertise. Some yards have adopted turnkey technologies for their projects, but the need for domestic LNG tanker construction capabilities is pressing.

The economy of scale is also important in future, for if Chinese yards are to be truly competitive, they would need to master the construction of larger vessels.

2014 will be a pivotal year for Chinese shipbuilders as they strive to meet the government's targets for 2015. The dominance of South Korea and Japan are likely to persist for the next few years. But Chinese yards, with government backing and supported by access to cheap credit, are set to compete in an ever-cutthroat market in the coming years.