China Merchants Energy Shipping is adding 10 tankers as part of its “100-ship” newbuilding order plan.
The latest contract brings its spending on new tonnage this year to almost $3.6bn.
Shipbuilding sources said the Shanghai-listed behemoth has ordered five VLCCs and five aframax product carriers with its favourite shipyard, Dalian Shipbuilding Industry Co (DSIC).
Sources said the ships could be ordered via subsidiary Associated Maritime Co Ltd (AMCL) in Hong Kong.
Officials at CMES and Dalian Shipbuilding declined to comment when contacted by TradeWinds.
A notice on CMES’ procurement and bidding website shows that AMCL has invited DSIC to construct the 306,000-dwt crude carriers and the 115,000-dwt LR2s.
It did not disclose the cost and delivery dates.
Sources said AMCL and DSIC signed letters of intent for the newbuildings several weeks ago.
They added that DSIC is set to deliver the tankers between 2027 and 2028.
Brokers said CMES has ordered conventionally fuelled vessels, but they are ammonia-ready.
They think the shipowner is paying between $123m to $125m each for the VLCCs and around $70m per ship for the LR2 tankers.
This order lifts CMES’ spending on newbuildings in 2024 to more than $3.5bn.
In April, it spent $1.32bn on four 271,000-cbm Q-Max LNG carriers against long-term charters from producer QatarEnergy.
Hudong-Zhonghua Shipbuilding (Group) is due to deliver the quartet in 2028.
CMES has also ordered 12 scrubber-fitted 210,000-dwt newcastlemax bulk carriers for delivery in 2027 and 2028.
Jiangsu-based New Times Shipbuilding will build eight vessels, Qingdao Yangfan Shipbuilding two and Qingdao Beihai Shipbuilding Heavy Industry two.
Sources said CMES’ order for the newcastlemaxes is far from over. It is said to be planning to add six more at Qingdao Beihai.
CMES is said to have ordered the newcastlemaxes as part of its fleet renewal and expansion programme, in line with its target to achieve carbon neutrality by 2060.
It is optimistic about the bulker segment and believes the investments will deliver good returns.
The company was reported to be paying New Times $76m each for the bulkers, while the Qingdao Yangfan pair was priced at $72.25m apiece and the Qingdao Beihai pair at close to $80m each.
The Qingdao Beihai bulkers are pricier because they include energy-saving devices and shaft generators.
Clarksons’ Shipping Intelligence Network shows that CMES has 68 newbuildings on its orderbook, including a series of midsize bulkers, pure car/truck carriers, MR tankers, LNG carriers and passenger vessels.
It is due to take delivery of one methanol dual-fuel VLCC from DSIC next year and four LR2 tankers from Shanhaiguan Shipbuilding between 2025 and 2026.
