China's shipyards have lifted their share of global LNG carrier newbuilding orders to 38.8% in 2025, narrowing a long-standing lead held by South Korean yards that still commands 61.2% of the 66-vessel order book recorded through September 18.

What does the Clarkson data show?

According to Clarkson Research, the global LNG carrier order count from January through September 18 totaled 66 vessels. South Korean yards booked 40 of them; Chinese yards secured 26. China's market share had collapsed from 42.8% in 2024 to 8.1% last year before rebounding sharply in 2025, a recovery that puts fresh pressure on the three Korean big-three builders that have historically dominated the segment.

Why is China gaining now?

The bounce tracks a broader Chinese shipbuilding boom tied to the Iran war, where uncertainty around the Strait of Hormuz pushed tanker and bulker owners toward Chinese price-competitive yards. New orders across the Chinese shipbuilding industry reached 121,060,000 DWT in the first half of 2025, exceeding 80% of the global total. Hengli Heavy Industry alone booked more than 200 vessels in the first six months, a backlog second to none among single shipyards.

Hengli built that book on large oil tankers, bulkers and containerships. Its first LNG carrier newbuilding order is now described as imminent. Once Hengli enters, the count of Chinese yards with the capacity to build large LNG carriers rises from five to six.

Can Chinese yards close the technological gap?

Industry analysts continue to view a near-term displacement of Korean builders as unlikely. LNG carriers transport cargo at approximately minus 163 degrees Celsius, demanding sophisticated cargo hold design, insulation and gas processing systems. Lead times run three to four years, and shipowners typically require extended verification before awarding a maiden series to a new yard. Trust built through long delivery track records does not transfer overnight.

But that barrier is eroding. More Chinese shipyards are securing LNG cargo hold licenses from France's GTT, the dominant technology licensor. Each new license dilutes the rarity of know-how that Korea has monopolized. Repeat ordering and construction cycles will compress the gap, even if a lead persists today.

What do shipowners and operators need to watch?

The competitive stakes extend beyond LNG. One industry official pointed to adjacent gas and low-carbon ship types, arguing Korean yards must defend the next category before Chinese builders arrive there too.

"Following LNG carriers, the high-value vessel market is expanding into liquefied carbon dioxide carriers and ammonia carriers," the official said. "We must secure competitiveness that encompasses not only the construction technology of next-generation vessels but also eco-friendly fuels and core equipment."

For charterers, shipowners and energy majors, the practical question is yard choice and slot availability. If Hengli's first LNG order lands and a sixth Chinese yard enters the segment, expect price tension on newbuild contracts to intensify through 2026. Korean yards, in turn, will likely pitch harder on next-generation gas carrier designs and alternative-fuel vessels to defend order share. Watch the next Clarkson quarterly tally, expected later this year, for confirmation of whether China's 38.8% share extends or stalls as Korean yards push back on the technology front.