China’s tanker giant Cosco Shipping Energy Transportation (CSET) is set to order its first solely owned LNG carriers as it diversifies.
The Hong Kong-listed company said at its latest board meeting that directors approved a $509.23m order for two 175,000-cbm ships to be built at Dalian Shipbuilding Industry (Group) in China.
The deal is being handled by subsidiary Shanghai Cosco Shipping LNG Investment, which is investing in the ships through its Yuanhai LNG Investment Co unit.
Yuanhai LNG is in turn setting up single-ship companies Yuanxing LNG Shipping and Yuanzhi LNG Shipping with a registered capital of $76.5m each.
The company then increased its capital in Shanghai Cosco Shipping LNG Investment by $153m.
State-controlled CSET said: “The shipbuilding contract will be signed in the near future.”
Last year, TradeWinds reported that Japan’s Mitsui OSK Lines strengthened its relationship with CSET through a newbuilding investment deal.
The Chinese owner took a 49% stake in three LNG vessels ordered in September 2022 by MOL at Hudong-Zhonghua Shipbuilding in China.
Parent Cosco Shipping Holdings said it had agreed to boost its subsidiary’s capital by $118.1m for the asset acquisition.
The 174,000-cbm trio will deliver in 2028 and go on long-term charters to ENN LNG Singapore, a wholly owned subsidiary of China’s ENN Natural Gas.
The Cosco group has stakes in more than 70 LNG carriers overall.
Joint-venture orders
VesselsValue now lists seven LNG carrier newbuildings owned with MOL in total.
CSET also has three MRs on order in a joint venture with Hua Hai Petroleum, plus two MRs booked for its own account.
The fleet of 132 ships includes two small LPG carriers, as well as 42 VLCCs, other crude tankers and a range of product carriers.
Bulging
These next-up LNG carriers are set to swell DSIC’s already bulging LNG orderbook of 15 vessels.
The shipbuilder, which is one of China’s new entrants in LNG carrier construction, has secured four 175,000-cbm LNG newbuildings from Sea Jade Investment — a joint venture between Hong Kong shipowner Wah Kwong, Chinese leasing company CSSC (Hong Kong) Shipping and China Gas Holdings.
In addition, the shipbuilder is listed as having a further eight LNG carriers on order for China Merchants Energy Shipping and another three for China Energy Shipping — a company controlled by China Cosco Shipping.
China has moved to bring more of its domestic yards into LNG carrier construction as it beefs up its owned and operated fleet in this sector in readiness for shipping in its new contracted volumes of cargo.
