The Chinese chemicals producer is extending its shipping investments into ocean transport, following an earlier coastal gas carrier project.

China’s Zhejiang Jiahua Energy Chemical Industry Co., Ltd. plans to invest up to $165 million in a 102,000-cubic-metre liquefied hydrocarbon carrier, primarily to transport feedstock for its chemical operations.

An October 29 filing names Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd. as joint sellers, with delivery scheduled no later than June 30, 2030. The investment ceiling excludes financing costs during construction.

The board approved the project on October 28. The filing specifies that contract effectiveness also requires authorised signatures and company seals, without confirming a signing date.

The proposal follows an August investment announcement for a smaller gas carrier serving China’s coastal market, extending Jiahua’s shipping plans from domestic distribution to overseas feedstock supply.

Expanding feedstock options

Based in Jiaxing, Zhejiang province, the Shanghai-listed company operates chemical manufacturing, energy and terminal businesses. Its products include polyvinyl chloride, or PVC, a plastic widely used in construction and industrial applications.

Jiahua intends to import ethylene for PVC production. It also envisages carrying ethane for conversion into ethylene by third-party processors, adding another feedstock procurement route. Spare shipping capacity could serve other Chinese refiners, petrochemical producers and traders.

Ethane is a feedstock that can be converted into ethylene through cracking. Buying ethane and arranging processing would therefore move Jiahua’s procurement further upstream from purchasing ethylene directly.

The company’s latest operating figures show pressure from rising input prices and falling product prices. In the third quarter of 2026, its average ethylene purchase price increased 20.09% from the preceding quarter, while its average PVC selling price fell 8.42%.

Across the first nine months, ethylene purchases averaged RMB6,416.74 per tonne, up 1.09% year on year. PVC sales averaged RMB4,275.09 per tonne, down 1.88%.

Building on terminals and coastal shipping

Jiahua’s vessel investments follow an expansion of its terminal interests.

Its 2026 interim report confirmed a 34% stake in Ningbo Xinrun Petrochemical Storage and Transportation through its wholly owned Meifu terminal subsidiary. The company identified access to deepwater terminal resources as a reason for that investment.

In August, Jiahua announced plans for a 35,000-cubic-metre liquefied hydrocarbon carrier through Jiamei Shipping, a company controlled by Meifu. Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. was selected as builder, with delivery due by December 31, 2029.

That project has an investment ceiling of RMB750 million, including initial operating expenses. Meifu’s contribution is capped at RMB450 million.

The vessel is intended to begin serving Zhejiang before expanding along China’s coast, primarily under long-term cargo transportation contracts. Jiahua said a shortage of its own shipping capacity had constrained the development of its existing cargo-handling and storage business.

In September, Meifu issued an irrevocable RMB324 million payment guarantee to the shipyard for the coastal vessel project, with counter-guarantees from Jiamei’s other shareholders.

The two projects address different transport requirements: the smaller vessel targets coastal services, while the proposed Jiangnan newbuilding would support overseas procurement. Both build on an established terminal business, which generated approximately RMB145.3 million in revenue during the first nine months of 2026.

Why ownership rather than chartering?

Jiahua said available charter tonnage was predominantly medium-sized, whereas its plans require large-volume ocean transport. It expects ownership to provide more reliable access to capacity, reduce exposure to charter-rate fluctuations and avoid charter premiums over long-term operation.

Other Chinese chemical producers have also invested in vessels for feedstock transportation.

Jiangnan completed a three-vessel series of 99,000-cubic-metre very large ethane carriers for Wanhua Chemical in November 2024, delivering the final ship, GAS ZHUJIANG, on November 15. According to China State Shipbuilding Corporation, the design can carry ethane, ethylene and liquefied petroleum gas.

That earlier programme provides an established example of a Chinese chemical producer commissioning specialised shipping capacity to support its raw-material supply.