COSCO Shipping Energy Transportation (CSET) has signed shipbuilding contracts with Jiangnan Shipyard for the construction of four 175,000 cubic metre liquefied natural gas (LNG) carriers.
The total investment for the vessels is CNY6.445 billion ($952.7 million), which the shipowner will fund through a combination of internal resources and external financing.
The vessels are scheduled for delivery between 2029 and 2030, after which they will be chartered to Shell Tankers Singapore for a period of seven years. The charter agreement includes extension options and is expected to generate total lease revenues of approximately CNY5.4 billion.
The transaction is structured via CSET's wholly-owned subsidiary, Shanghai LNG, through its own subsidiary, Yuanhai LNG Investment. The latter will establish four single-vessel companies to hold ownership of the newbuild ships upon delivery.
Under the contract terms, the price of the vessels will be adjusted downward if delivery is delayed or if performance indicators such as speed and fuel consumption fall below standard thresholds.
CSET said it also retains the right to reject the vessels if performance deviations exceed acceptable limits.