On May 24, COSCO SHIPPING Energy Transportation Co., Ltd. (hereinafter referred to as “COSCO SHIPPING Energy Transportation” or “the Company”) issued the “Announcement on the Resolution of the Seventh Board of Directors Meeting in 2025”.
Upon deliberation, the Board of Directors of COSCO SHIPPING Energy Transportation has approved its wholly-owned subsidiary, COSCO SHIPPING Chemical Carrier Co., Ltd.(“COSCO SHIPPING Chemical Carrier”), to invest in the construction of a 9,200 dwt stainless steel chemical tanker at Wuchang Shipbuilding Industry Group. The total investment is approximately RMB 191 million (approximately US$27 million) and a contract price of approximately RMB 180 million (tax inclusive).
The project investment comes from self-owned funds (about RMB 47.266 million) and external financing. Among them, the self-owned funds are solved by COSCO SHIPPING Energy Transportation increasing its capital to COSCO SHIPPING Chemical Carrier.
COSCO SHIPPING Energy Transportation said that the project is economically feasible and risk-controlled, which will help optimize the company’s chemical fleet structure and business layout and improve overall profitability.
So far this year, COSCO SHIPPING Energy Transportation has ordered a number of new vessels.
On February 12, COSCO SHIPPING Energy Transportation spent RMB 3.496 billion to order six tankers from COSCO SHIPPING Heavy Industry, namely, two 74,000 dwt Panamax methanol-fueled ready crude oil/product tankers from COSCO Shipping Heavy Industry (Dalian), with a total investment of about RMB 469 million each (the contract price is RMB 456 million each); two 114,200 dwt Aframax methanol dual-fuel crude oil tankers from COSCO SHIPPING Heavy Industry (Yangzhou), with a total investment of about RMB 629 million each (the contract price is RMB 610 million each), and two 109,900 dwt LR2 methanol dual-fuel crude oil/product tankers, with a total investment of about RMB 650 million each (the contract price is RMB 630 million each).
With the official announcement of COSCO SHIPPING Energy Transportation, Wuchang Shipbuilding Industry ushered in the second stainless steel chemical tanker order this year. The first order this year is from Xingtong Shipping.
On January 9, Xingtong Shipping’s subsidiary signed a contract with Wuchang Shipbuilding Industry for the construction of 2+2 25,900 dwt methanol dual-fuel stainless steel chemical tankers, with the price of a single vessel for the project being RMB 315 million, and the total price of the first batch of contracts being RMB 630 million. The first vessel is scheduled to be delivered by March 31, 2027, while the second vessel is scheduled to be completed by June 30, 2027 for delivery.