COSCO SHIPPING Energy Transportation Co., Ltd. (COSCO SHIPPING Energy) has placed an order with Jiangnan Shipyard (Group) Co., Ltd. for four 175,000 m³ LNG carriers, with a total contract value of RMB 6.445 billion (approximately $953 million).
COSCO SHIPPING Energy announced that on June 2, 2026, its indirectly wholly-owned subsidiary, Future Ocean LNG Investment Co., Limited (Future Ocean LNG), entered into a contract with Jiangnan Shipyard as the buyer for four 175,000 m³ LNG carriers. The four new vessels are expected to be delivered between 2029 and 2030.
COSCO SHIPPING Energy stated that the order for four LNG carriers represents a significant step in serving the national energy strategy, optimizing the structure of its LNG fleet and investment portfolio, and capitalizing on market opportunities. Through this transaction, COSCO SHIPPING Energy will consolidate and expand the capacity of its LNG fleet, enhance its independent marketing and operational capabilities, and strengthen its international strategic footprint, all of which align with the company’s long-term development strategy and the interests of all shareholders.
On May 26, 2026, COSCO SHIPPING Energy convened its eighth Board of Directors meeting of 2026, at which it voted to approve the Proposal Regarding Shanghai LNG’s Project to Invest in and Construct Four LNG Carriers. This resolution authorizes its wholly-owned subsidiary, Shanghai COSCO SHIPPING LNG Investment Co., Ltd. (Shanghai LNG), to invest in and construct four LNG carriers through Future Ocean LNG (a wholly-owned subsidiary of Shanghai LNG).
COSCO SHIPPING Energy will contribute RMB 2.093 billion in additional capital to Shanghai LNG, and Shanghai LNG will, in turn, contribute RMB 2.093 billion to Future Ocean LNG. Subsequently, Yuanhai Company will invest RMB 2.093 billion to establish four wholly owned single-ship companies. These four single-ship companies will then commission Jiangnan Shipyard to construct four LNG carriers, with a total investment amounting to RMB 6.445 billion.
Following the delivery of the four LNG carriers, four single-vessel operators chartered the vessels to Shell Tankers (Singapore) Private Limited on a time charter basis for a term of seven years (with an option for the charterer), with the total charter hire for the term amounting to approximately RMB 5.4 billion (equivalent to approximately US$799 million).
In its announcement, COSCO Shipping Energy revealed that the transaction price was determined through an open and fair competitive bidding and negotiation process. The final price offered by Jiangnan Shipyard was lower than the quotes from other shipyards, and its key terms—such as the delivery schedule—were more favorable. This aligns with market-based pricing principles and is considered fair.
Excluding the latest orders, Jiangnan Shipyard has already announced orders for six 175,000 m³ LNG carriers this year. On January 15, Jiangnan Shipyard signed a contract with Singapore-based Eastern Pacific Shipping (EPS) to build two 175,000 m³ LNG carriers, marking the first publicly announced LNG carrier order for a Chinese shipyard in 2026.
On January 30, Jiangnan Shipyard received another order for four 175,000 m³ LNG carriers, scheduled for delivery between 2028 and 2029. Minsheng Financial Leasing will act as the shipowner for this batch of LNG carriers, which will be leased on a long-term basis to Shell Singapore Pte Ltd (SSPL). upon delivery. Shandong Marine Energy will be responsible for commercial management, while Shell International Shipping will handle technical operations.