Persistent payment problems led DSME to cancel a very large gas carrier (VLGC) newbuilding contract with China Peace, which opened the door for market leader BW LPG to snap up some of the ships at an attractive price this week.
Well-placed sources say Beijing-based China Peace — a joint venture between state-owned China National Petroleum Corp (CNPC) and China Peace Petroleum Group — failed to pay the second instalment on the gas carriers, leaving the Okpo-based yard holding onto an initial $48m deposit.
