COSCO Shipping Energy Orders 9,000 m3 Ethylene Carrier for USD 50 Million
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COSCO Shipping Energy Transportation, a Chinese shipping company listed on the Shanghai and Hong Kong stock exchanges, approved the construction of a 9,000 cubic meter ethylene carrier at the Dalian COSCO Shipping Heavy Industry shipyard, a subsidiary of the same group. The deal is channeled through Hainan Zhaogang Shipping, a subsidiary controlled by COSCO's energy transportation business in Dalian, and involves an investment of 335 million yuan, equivalent to about USD 50 million.
Costs and Financing
The total cost of the project amounts to approximately 341 million yuan (around USD 51 million), a figure that includes construction financing, supervision expenses and other capitalized costs. Hainan Zhaogang is 87% controlled by Dalian COSCO Shipping Energy Supply Chain, and the deal will be financed through internal resources and external debt. COSCO Shipping Energy also approved a capital contribution of 122 million yuan to its Dalian subsidiary, which in turn will make a contribution of the same amount to Hainan Zhaogang Shipping.
Vessel Specifications
The new vessel, a multipurpose ethylene carrier, will feature dual LNG propulsion, energy-saving technologies and intelligent optimization systems. The vessel is expected to be ready within 18 months after the construction contract takes effect, which is still subject to signing and completion of the parties' approval procedures.
Expansion Strategy
According to the company, the addition seeks to expand its petrochemical product carrying capacity, strengthen its presence in domestic and international markets, and advance technologies aimed at reducing emissions from its maritime operations, in line with the global trend toward decarbonization of shipping. COSCO indicated that it compared bids from other independent shipyards before opting for one belonging to the COSCO Shipping group itself.
Other Recent Orders
This investment adds to a broader expansion of COSCO Shipping Energy's tanker and gas carrier fleet. Earlier this year, the group had ordered two 74,900 dwt panamax tankers at COSCO Shipping Offshore Qidong for about USD 153 million, following a previous order for two 50,000 dwt MR tankers at Guangzhou Shipyard International for approximately USD 104 million.
