COSCO Shipping Energy Orders 10 VLCCs, Adds 14 More on Charter
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COSCO Shipping Energy Transportation, a Chinese tanker shipping company, announced on November 9 a fleet expansion with 24 new VLCCs. The company signed contracts worth RMB9.48bn (US$1.42bn) for the construction of ten supertankers and approved a plan to add another 14 vessels through long-term bareboat charters.
The ten vessels ordered
Six of the VLCCs were contracted at Yangzhou COSCO Shipping Heavy Industry for RMB5.69bn (US$853m), while the other four were ordered from Dalian Shipbuilding Industry Corporation (DSIC) for RMB3.79bn, a figure Splash 247 converts to US$569m and Ports News Russia to US$568m. The Yangzhou vessels, fitted with LNG-ready fuel systems, will be delivered between August 2029 and November 2030, while the DSIC vessels, designed for future conversion to LNG or methanol, will arrive between September 2029 and May 2030.
14-VLCC charter program
In addition, COSCO Shipping Energy approved taking another 14 VLCCs on bareboat charter through six Chinese financial leasing companies, with maximum rental commitments of RMB17.4bn (US$2.61bn) over terms of up to 20 years. The program, which according to Splash 247 is channeled through the subsidiary Huanyu Shipowning and according to Ports News Russia through Universal Shipping Enterprises, includes ten dual-fuel LNG VLCCs and four conventionally powered vessels, all scheduled for delivery during 2030. The lessors include Bank of Communications Financial Leasing, ICBC Financial Leasing, Agricultural Bank of China Financial Leasing, Bank of China Financial Leasing, CITIC Financial Leasing and Minsheng Financial Leasing.
A possible additional package of 16 vessels
The shipping company's board also approved a separate long-term leasing and financing proposal for 16 additional VLCCs, which also requires shareholder approval. The company has not yet disclosed financial partners, shipyards, contract values or delivery schedules, so it remains unclear whether these vessels represent a further fleet expansion or overlap with the other announced programs.
COSCO Shipping Energy Transportation operates in the transport of crude oil, petroleum products and gas, and is indirectly controlled by China COSCO Shipping Corporation, the Chinese state-owned shipping and logistics group. Wang Mingfeng serves as the company's chairman.
