On February 12, COSCO SHIPPING Energy Transportation Co., Ltd. (hereinafter referred to as “COSCO SHIPPING Energy”) released the “Announcement on the Resolution of the Second Board of Directors Meeting in 2025,” announcing that it will place orders for six oil tankers at shipyards owned by COSCO SHIPPING Heavy Industry Co., Ltd. (hereinafter referred to as “COSCO SHIPPING Heavy Industry”). The total investment (including capitalized costs such as construction period interest and supervision fees for the six vessels) amounts to RMB 3.496 billion (about $489 million).
The announcement disclosed that COSCO Shipping Energy will build two 74,000 DWT Panamax methanol-fueled Ready crude oil/products tankers in COSCO Shipping Heavy Industry (Dalian) with a total investment of about RMB 469 million for each vessel (contracted price of RMB 456 million/vessel). Hainan COSCO Shipping Energy Transportation to build two 114,200 DWT Aframax dual-fuel methanol crude oil tankers in COSCO Shipping Heavy Industry (Yangzhou) with a total single-vessel investment of approximately RMB629 million (contracted vessel price of RMB610 million/vessel); Hainan COSCO Shipping Energy will build two 109,900 DWT LR2 methanol dual-fuel crude oil/product tankers at COSCO Shipping Heavy Industry (Yangzhou), with a total investment of about RMB650 million for a single vessel (contracted vessel price is RMB630 million each).
According to the announcement, COSCO SHIPPING Energy and its subsidiaries will sign contracts for the construction of six vessels with shipyards belonging to COSCO Shipping Heavy Industry respectively in the near future.
COSCO SHIPPING Energy believes that the new vessels are an important initiative for the Group to implement the development plan of the tanker fleet and promote the green and low-carbon construction of the fleet. The delivery of the new vessels will further optimize the age structure of the overall tanker fleet, enhance the competitive advantages of domestic and foreign trade oil transportation, help the Group’s globalization layout, and improve the overall profitability and shareholders’ return.
As previously reported, in November 2024, COSCO SHIPPING Energy signed a contract with Dalian Shipbuilding Industry Corporation (DSIC) for six 307,000 dwt Very Large Crude Carriers (VLCCs) at a total contract price of RMB 5,748 million inclusive of tax, with the price of a single vessel at RMB 958 million. in January 2025, COSCO SHIPPING Energy raised RMB 8 billion to finance the construction of six VLCCs, two LNG carriers, and three Aframax crude oil tankers.
Public information shows that COSCO SHIPPING Energy’s main businesses include international and domestic coastal crude oil and refined oil transportation, as well as international liquefied natural gas (LNG) transportation. The company’s oil tanker fleet ranks first in the world in terms of capacity, covering all mainstream oil tanker types globally, making it the most comprehensive oil tanker fleet in the world. As of June 30, 2024, the group owns a total of 154 oil tankers with a combined deadweight tonnage of 22.43 million.