On August 16, China Merchants Energy Shipping (CMES) released the Announcement on Newly Built Tankers.
The announcement disclosed that on August 16, 2024, CMES, through its wholly-owned subsidiary Associated Maritime Company (Hong Kong) Limited (AMCL), entered into a Vessel Ordering Agreement with Dalian Shipbuilding Industry Corporation(DSIC) in Shenzhen for the ordering of five 306,000 DWT Very Large Crude Carriers (VLCCs) and five 115,000 DWT Aframax tankers at a total price of RMB 6.638 billion ($929 million).
The two types of 10 tankers ordered above are the new generation of energy-saving and eco-friendly vessels, which are equipped with energy-saving and eco-friendly equipments such as shaft generator, desulfurization scrubber tower, etc., and the environmental protection indexes can meet the requirements of NOx, SOx and CO2 emission which are newly put into effect.The new shipbuildings will be delivered one after another between 2027 and 2028, and when put into operation, they will provide a strong guarantee for the security of China’s international energy transportation.
CMES indicated that the order for new vessels is in line with the company’s development strategy, which is necessary to maintain the size of the company’s fleet, continue to optimize the fleet structure, replace aged vessels and moderately expand the size of the Aframax tanker fleet.
After the above vessels are completed and put into operation, it is expected that the ship type and age of the CMES tanker fleet will be further improved, and the fleet size and market competitiveness will be enhanced, which will be helpful for improving the market share and customer service capability, and strengthening the ability to capture market opportunities and to withstand the risk of market fluctuations.
It is reported that 306,000 DWT VLCC is the latest generation of VLCC developed by DSIC, with an overall length of about 333 meters and a beam of 60 meters. The VLCC design meets the latest international conventions, specifications and requirements of major oil carriers, and the Energy Efficiency Design Index (EEDI) reaches the Phase III standard, with excellent overall performance and good seaworthiness, which enables it to navigate the Strait of Malacca quickly, effectively shortening the operating cycle and improving the operating efficiency.
Based on the operating speeds commonly adopted by shipowners and taking into account the improvement of the ship’s performance in wind and waves, DSIC has optimized the shape of this series of VLCCs. The VLCC adopts an integrated design of energy-saving guide wheels, propellers etc. in pursuit of higher hydrodynamic performance and to achieve the goal of energy saving and consumption reduction.
The 115,000 DWT crude oil tanker is a new Aframax tanker tailored to meet the needs of CMES, with an overall length of about 243 meters and a beam of 44 meters. Adhering to the design concept of “safety, economy and environmental protection”, this tanker is equipped with a variety of energy-saving equipments to improve operational economy and maximize energy efficiency and economy.
The main engine and generator are equipped with SCR nitrogen removal equipment and desulfurization scrubber tower to meet the required environmental emission standards for nitrogen oxides (NOx) and sulfur oxides (SOx). It is characterized by excellent safety, energy saving, environmental protection and portability.
The cooperation between DSIC and CMES started in 2007. After the signing of this project for 10 tankers, DSIC will build 56 vessels of various types for CMES, with a total of more than 12.5 million tons of deadweight tonnage.
The signing of this order will further deepen the all-round cooperation between CSSC and China Merchants Group, consolidate the leading position of CMES in the leading position in the field of medium and large-sized oil tanker construction, and mark another solid step in the process of both parties practicing the concept of low carbon and realizing the goal of “double carbon”.
For DSIC, CMES’ order for 10 newbuildings of two types is the second tanker order it has made public this month. Earlier this month, Seatankers Management, a subsidiary of Norwegian shipowner John Fredriksen, has announced that it has increased the number of vessels of the same type to be built in DSIC to eight units, and that all the new vessels are expected to be delivered from 2026, with a total value of $928 million.
In addition to tankers, CMES has also made a lot of moves in the field of bulk carriers this year. The company announced on June 13 and June 26 this year that its wholly-owned subsidiary signed a contract with New Times Shipbuilding for the construction of eight 210,000 dwt Newcastlemax bulk carriers, with a total cost of about RMB 4.4 billion, which will be delivered one after another starting from 2028; and signed a contract with Qingdao Yangfan Shipbuilding for the construction of two 210,000 dwt Newcastlemax bulk carriers, with a total cost of about RMB 1.05 billion, which will be delivered one after another starting from the second half of 2027. The total cost of the vessels is approximately RMB1.05 billion, and the vessels will be delivered from the second half of 2027 onwards.
In addition, CMES has ordered two 210,000 dwt Newcastlemax bulk carriers from Beihai Shipbuilding, with a total order value of about $160 million, which are expected to be delivered in the second half of 2027, sources said.