On October 28, COSCO SHIPPING Energy Transportation Co., Ltd. (COSCO SHIPPING Energy) announced that its subsidiary, Hainan Zhaogang Shipping, intends to enter into a shipbuilding contract with COSCO Shipping Heavy Industry (Dalian) for the construction of one 9,000 m³ multi-purpose ethylene carrier. The contract price, inclusive of tax, is 335 million yuan (approximately $50 million).
According to the announcement, including capitalized expenses such as interest during construction and supervision fees, the total investment for the aforementioned transactions amounts to approximately 341 million yuan (approximately $51 million). COSCO Shipping Energy made a cash capital contribution of 122 million yuan to Dalian Haineng, and Dalian Haineng, holding an 87% stake, made a cash capital contribution of 122 million yuan to Hainan Zhaogang Shipping.
As announced, the newly built ethylene carrier will feature an LNG dual-fuel propulsion system and be equipped with energy-saving and intelligent systems, actively responding to the global trend toward carbon reduction in shipping and aligning with COSCO Shipping Energy’s sustainable development strategy.
The vessel is expected to be delivered and put into operation within 18 months after the contract takes effect. It will effectively supplement COSCO Shipping Energy’s ethylene shipping capacity, consolidate and expand the company’s market share in both domestic and international ethylene transportation, and enhance its customer service capabilities and operational resilience. Consequently, this will have a positive impact on the company’s long-term revenue and profitability, laying a solid foundation for improving its overall competitiveness and operational efficiency.