COSCO Shipping Energy Transportation has announced plans to add 24 Very Large Crude Carriers (VLCCs) to its fleet, combining $1.42 billion in direct newbuilding investments with 14 vessels to be acquired through long-term bareboat charters.
The Shanghai- and Hong Kong-listed company announced on November 9 that its subsidiary Hainan COSCO Shipping Energy Transportation had ordered ten VLCCs worth RMB9.48 billion ($1.42 billion) from two Chinese shipyards. Six vessels will be built by Yangzhou COSCO Shipping Heavy Industry for RMB5.69 billion, while Dalian Shipbuilding Industry Corporation (DSIC) will construct four for RMB3.79 billion. Deliveries are scheduled between 2029 and 2030.
The Yangzhou vessels will be LNG-ready, while the DSIC ships will be designed for future conversion to LNG or methanol dual-fuel propulsion.
Separately, COSCO has approved bareboat charter arrangements for 14 additional VLCCs from six Chinese financial leasing companies, involving maximum rental commitments of RMB17.4 billion ($2.61 billion) over periods of up to 20 years. The charter fleet will comprise ten LNG dual-fuel and four conventionally powered vessels, with deliveries expected in 2030.
The company said the leasing model would enable fleet expansion while limiting upfront capital expenditure. Both the charter programme and certain related-party transactions remain subject to shareholder approval.
The board has also approved a separate proposal involving long-term leasing and financing arrangements for another 16 VLCC newbuildings, although details of the financing partners, shipyards and delivery schedules are yet to be disclosed. It remains unclear whether these vessels represent additional capacity or overlap with the announced programmes.