COSCO SHIPPING Energy Transportation Co., Ltd. (hereinafter referred to as “COSCO SHIPPING Energy” or “the Company”) announced that on May 26, COSCO SHIPPING Energy convened its eighth board meeting of 2026 to review and approve several resolutions, including the “Shanghai LNG Investment Project for the Construction of Four LNG Carriers,” the “Shanghai LNG Long-Term Charter Project for Two Gas Carriers,” the “Long-Term Time Charter-In of Two LR2 Vessels,” and the “Capital Increase for the Newbuilding Project of Nine Oil Tankers by Hainan COSCO Shipping Energy Transport Co., Ltd.,” among other proposals.
It is understood that COSCO Shipping Energy’s two core businesses are tanker transportation and LNG transportation, while also engaging in the storage and transportation of liquefied petroleum gas and chemicals. Its wholly-owned subsidiary, Shanghai COSCO Shipping LNG Investment Co., Ltd. (Shanghai LNG), and its 50% owned subsidiary, China LNG Transportation (Holdings) Co., Ltd. (CLNG), are currently the only two large-scale LNG transportation companies in China.
The fleet list shows that COSCO Shipping Energy Transportation currently owns 24 LNG carriers, of which 16 will be operated by Shanghai LNG and 8 by CLNG. Except for 3 LNG carriers with podded electric propulsion systems whose delivery is pending, the remaining 21 vessels will be delivered between 2026 and 2028, all equipped with dual-fuel, low-speed two-stroke main engines. With the addition of the 4 vessels that have now passed review, COSCO Shipping Energy Transportation’s LNG carrier order backlog will increase to 28 vessels.
Currently, COSCO Shipping Energy Transportation has not disclosed the shipbuilder information for its latest LNG carrier investment and construction plans. According to previous records, the company has placed orders for LNG carriers with Hudong-Zhonghua Shipbuilding and Dalian Shipbuilding Industry Corporation (DSIC).
To continuously optimize its fleet structure and strengthen its foundation, COSCO Shipping Energy announced new shipbuilding plans and simultaneously passed resolutions on long-term chartering projects for two gas carriers, long-term time chartering of two LR2 vessels, and capital increase for the construction of nine new oil tankers.
Specifically, COSCO Shipping Energy plans to sign a vessel charter agreement with Navios Maritime Partners to charter two new LR2 vessels from the latter or its designated shipowner company for a term of 62 months (with options), with a total charter rate equivalent to approximately RMB 800 million (approximately US$118 million).
COSCO Shipping Energy’s indirectly wholly-owned subsidiary, COSCO Shipping LNG Investment Co., Ltd. (hereinafter referred to as “COSCO Shipping”), plans to sign a ship leasing contract with Seaspan Corporation to lease two large gas carriers from its subsidiary, Single Ship Company, for a term of 20 years (with an option for COSCO Shipping). The total rental amount during the lease term is approximately RMB 3.4 billion (approximately US$501 million).
According to the “Announcement on Vessel Leasing by a Wholly-Owned Subsidiary of COSCO Shipping Energy” disclosed on the same day, COSCO Shipping Energy plans to sign a time charter contract with a Chinese lessee to lease two large gas carriers for a term of 20 years (with an option for the lessee), with a total rental income of approximately RMB 5.9 billion. The two vessels to be leased are those leased by COSCO Shipping Energy from Seaspan Corporation, and neither is currently in operation. Delivery is expected to be completed in stages throughout 2028.
COSCO Shipping Energy stated that the two large gas carriers involved in the transaction possess technological advantages in green and low-carbon transportation and multi-liquid cargo compatibility, which can adapt to the transportation needs of various clean energy chemical raw materials. This will help the company better meet the new business development needs of key customers, enhance customer loyalty, broaden the path of capacity development, and consolidate and deepen the cooperative relationship in the industrial chain. The LR2 vessel aims to optimize the tanker fleet structure, maintain the medium- and long-term capacity scale, and enhance the global capacity allocation and operation capabilities.
Regarding the new shipbuilding project of nine oil tankers, COSCO Shipping Energy increased its capital in its wholly-owned subsidiary, Hainan COSCO Shipping Energy Transport, by RMB 1,017,575,400. The funds come from COSCO Shipping Energy’s 2025 private placement of A-shares to specific targets, and will be used to pay for milestone payments related to the investment projects of “investing in the construction of six VLCCs” and “investing in the construction of three Aframax crude oil tankers.” According to previous reports, the six VLCCs will be built by DSIC, and the three Aframax crude oil tankers will be built by COSCO Shipping Heavy Industry (Yangzhou).