Two vessels worth 720 million! COSCO Shipping Energy places another order to expand its fleet.

China COSCO Shipping Energy Transportation Co., Ltd. announced that it has placed an order with Guangzhou Shipyard International Co., Ltd. for two MR-type product oil/crude oil tankers.

On the evening of January 26, COSCO Shipping Energy announced that the board of directors had approved its controlling subsidiary, COSCO SHIPPING Petroleum Transportation Co., Ltd., to invest in the construction of two MR-type product oil/crude oil tankers at Guangzhou Shipbuilding International. The total investment per vessel is approximately RMB 360 million, of which the contracted price (including tax) is RMB 349 million per vessel. The total investment for the two vessels amounts to roughly RMB 720 million.

For reference, Clarkson’s data show that the current price of a new MR-type product oil tanker with a deadweight tonnage of 47,000 to 51,000 tons is approximately US$49.5 million (about RMB 344 million), down 5% from US$52 million in the same period last year.

It is reported that this order is part of the batch of 87 new vessels signed at the end of last year between COSCO Shipping Holdings and China Shipbuilding Group. The total contract value for all 87 new vessels amounts to approximately 50 billion RMB, of which about 47 billion RMB will be settled in cross-border RMB. This sets two new records in the history of China’s shipbuilding industry: the largest single cooperation deal ever signed and the highest-ever amount settled in cross-border RMB.

According to an announcement released by China Shipbuilding at the time, the aforementioned new shipbuilding projects involve six of its shipyards—Jiangnan Shipyard, Dalian Shipbuilding, Wuchang Shipyard, Guangzhou Shipbuilding International, CSSC Chengxi, and Beihai Shipyard. The relevant vessel types include ultra-large container ships, ultra-large bulk carriers, ultra-large crude oil tankers (VLCCs), grain carriers, multi-purpose heavy-lift vessels, MR-type tankers, ro-ro passenger ferries, and small container ships. Among these, Guangzhou Shipbuilding International has secured orders for two 50,000-ton deadweight MR-type product oil tankers.

In addition to the orders from Guangzhou Shipyard International, COSCO Shipping Energy also signed a contract in mid-December last year with a shipyard affiliated with COSCO SHIPPING Heavy Industry for the construction of 19 vessels, with a total contract price of RMB 7.88198 billion.

The above-mentioned order for 19 new vessels has been awarded to three shipyards under COSCO SHIPPING Heavy Industry. Among them, Dalian COSCO SHIPPING Heavy Industry will build a total of 10 vessels: one 9,000-cubic-meter ethylene carrier, two LR1-type product oil/crude oil tankers, three MR-type product oil/crude oil tankers, and four MR-type crude oil tankers. Yangzhou COSCO SHIPPING Heavy Industry will build a total of four vessels: two methanol dual-fuel Aframax crude oil tankers and two methanol dual-fuel LR2-type product oil/crude oil tankers. Guangdong COSCO SHIPPING Heavy Industry will build five MR-type product oil/crude oil tankers.

It is understood that COSCO SHIPPING Energy is a specialized company under COSCO SHIPPING Group Ltd., engaged in the transportation of energy products such as oil and LNG. It was formed through the restructuring of the energy transportation divisions of the former COSCO Group and China Shipping, and was established on June 6, 2016. The company is committed to becoming a full-cycle energy transportation solutions provider, offering customers high-quality services across all vessel types, globally, and around the clock.

COSCO Shipping Energy focuses on two core businesses: oil tanker transportation and LNG transportation. Currently, its oil tanker fleet ranks first in the world in terms of carrying capacity, covering all mainstream types of oil tankers and making it the shipping company with the most comprehensive fleet lineup globally. At the same time, the company is also a leader in China’s LNG transportation business and an important player in the global LNG transportation market.

According to data from the official website, COSCO Shipping Energy’s fleet owns and controls 159 oil tankers with a total transport capacity of 23.44 million deadweight tons, including 144 owned vessels and 15 chartered vessels. In total, the company has invested in 87 LNG carriers with a combined capacity of 15.05 million cubic meters, comprising 55 operating vessels and 32 newbuilds currently under construction. COSCO Shipping Energy owns and controls 9 chemical tankers with a total deadweight tonnage of 84,000 tons, plus one additional 9,000-ton chemical tanker awaiting delivery. Additionally, the company owns and controls 11 LPG carriers with a total capacity of 122,000 cubic meters, along with two more LPG carriers totaling 15,000 cubic meters that are yet to be delivered.

Excluding the latest orders, according to Clarkson’s data, as of now, Guangzhou Shipbuilding International has a total of 93 vessels on hand, with a combined deadweight tonnage of 6.73 million tons. These include 48 oil tankers, 18 container ships, 14 car carriers, 7 ro-ro passenger ferries, 4 offshore engineering vessels, and 2 other types of vessels. The delivery schedule extends through 2029.