Belgian shipping giant CMB.TECH has returned to China to place an order for a newbuilding project that will cost about $450 million.
According to TradeWinds, CMB.TECH has signed a contract with Beihai Shipbuilding, a subsidiary of China State Shipbuilding Corporation, for 5 new vessels of 2 types, including 1 319,000 DWT ammonia-ready very large crude carrier (VLCC), which is expected to be delivered by the end of 2028; and 2+2 ammonia-ready Suezmax tankers, which are expected to be delivered in the first half of 2028. All new vessels will use traditional fuels.
The cost of each new vessel has not yet been announced. Clarksons data shows that the current market price of a VLCC is around US$125 million, and the cost of a Suezmax tanker is about US$86 million.
This is the first time for CMB.TECH to order a Suezmax tanker from a Chinese shipyard, and also the first time for Beihai Shipbuilding to undertake a Suezmax tanker construction project.
CMB.TECH and North Beihai Shipbuilding have a deep relationship in the VLCC market. With the latest order, the two parties have signed 6+2 ammonia reserved VLCCs. In August 2023, Beihai Shipbuilding successfully entered the VLCC construction field with 1+1 319,000 DWT VLCCs from Belgium’s Euronav (now CMB.Tech). The option order took effect in October, and the third VLCC was signed in November. All three vessels are due to be delivered in the second half of 2026; in January 2024, the shipowner placed an additional order for 1+2 VLCCs, and added another VLCC on March 20. The order in August 2023 is also the first time that Euronav has ordered VLCCs from a Chinese shipyard.
Beihai Shipbuilding’s 319,000 DWT Ammonia Reserved VLCC is designed independently by China Ship Design & Research Center. The vessel has an overall length of 339.50 meters, a beam of 60.00 meters, a depth of 30.30 meters, a structural draught of 22.50 meters and a speed of 14.5 knots. It meets the requirements of the third stage of the Energy Efficiency Design Index (EEDI), and can be equipped with two 6,000 m3 ammonia fuel storage tanks in the future, realizing “zero carbon” operation throughout the vessel’s life cycle.
It is reported that CMB.TECH’s VLCC order is the first VLCC contract for Chinese shipbuilders this year. The LNG dual-fuel reserved VLCC ordered by Swiss Advantage Tankers from Jiangsu Hantong Ship Heavy Industry Co., Ltd. (HT) was previously ordered. The other 7 vessels were undertaken by Korean and Japanese shipyards, namely, Greece’s Capital Ship Management and Swiss Advantage Tankers ordered a total of 4 vessels from Hanwha Ocean, and NYK and Idemitsu Tanker ordered a total of 3 vessels from Nihon Shipyard.
In terms of Suezmax tankers, CMB.TECH also plans to order four more from Korean shipyards, which are currently in the negotiation stage.