Shell has tapped the Chinese newbuilding market for MR2 product tankers worth around $480m.
Shipbuilding sources have placed the UK supermajor behind a deal for ten 50,000 dwt newbuilds worth $48m each at CSSC Guangzhou Shipyard International (GSI).
The conventionally-fuelled ships are expected to enter service between 2027 and 2028.
The deal follows on from a letter of intent Shell inked with the yard, which has more than 70 MR newbuilding projects under its belt.
MR2s make up about 23% of the total tanker fleet, with more than 1,700 units on the water. However, the segment has been facing an increasing age profile where a substantial number of tankers are set to cross the 20-year mark – leading to a surge in orders in the past two years.
The MR2 orderbook-to-fleet ratio stood at over 17% as of the end of September, according to brokers, with the second-largest tanker orderbook after the aframax/LR2 segment.