Energy giant Shell has signed a contract for the construction of 10 MR2 product tankers with Guangzhou Shipbuilding International (GSI), a subsidiary of China State Shipbuilding Corporation, according to multiple shipbrokerage sources.
Previously, it was reported that the two parties have signed a Letter of Intent (LOI) for the construction of 10 MR2 product tankers, which have now officially become a firm order. The parties to the transaction have not yet commented.
The shipbroker estimates that the total value of the order is about $500 million (about RMB 3.536 billion), and the price of each vessel is about $48 million, which is expected to be delivered between 2027 and 2028.
The company currently manages a fleet of 28 vessels, mainly liquefied natural gas (LNG) carriers and oil/chemical tankers, according to Shell’s website.
It is understood that MR product tankers are divided into MR1 and MR2, the former has a carrying capacity of 25,000 tons to 40,000 tons, and the latter has a carrying capacity of about 45,000 tons to 50,000 tons.
According to data from shipbroker Xclusiv Shipbrokers, MR2 product tankers have become the first choice for shipowners to build newbuildings. At the end of September, the global new-to-fleet ratio for MR2 product tankers was 17.3% (dwt), up from 15.9% a month earlier.
At present, the order volume of MR2 product tankers in the tanker market is second only to Aframax/LR2 tankers. According to the data, the existing fleet size of the global MR2 product tanker is 1,762 units, with a total deadweight of 86.3 million; There are about 300 new MR2 product tankers with a total deadweight of 14.95 million tons, and most of them are expected to be put into market operation in 2026.
Ship brokers believe that the renewal of the MR2 product tanker fleet is necessary because, in the existing MR2 oil product tanker fleet, 15-20 years old vessels account for the largest proportion, reaching 24.7%, followed by 11-15 years old vessels accounting for 24.3%, and 6-10 years old vessels only account for 22.8%.
At present, tanker owners are keen to invest in the construction of MR2 product tankers, in addition to the aging fleet in urgent need of renewal, vessel price is also one of the important factors.
Clarkson data show that the current 47,000-51,000 DWT MR2 product tanker new vessel cost about $52 million, up about 11% from $47 million in the same period last year, Chinese shipyards dominate the MR2 product tanker with more than 150 orders, followed by South Korean shipyards holding orders for 66 vessels.
Take GSI as an example, the shipyard has gained a lot in the MR2 product tanker market this year. According to incomplete statistics, in addition to Shell’s 10 new vessels, it also undertake four 50,000-DWT MR2 product tankers of China Merchants Nanjing Tanker Corporation (NJTC), four 49,500 DWT MR2 product tankers of Leonhardt & Blumberg of Germany, and two 50,000 DWT methanol dual-fuel MR2 product tankers of Asia Pacific Shipping of Vietnam.