Shanghai-based COSCO Shipping Development said on Wednesday it had ordered 16 very large crude carriers (VLCC) worth CNY13.43 billion ($2.01 billion) from China State Shipbuilding Group.
COSCO said its unit Oriental Fleet International entered into contracts with affiliates of China State Shipbuilding Group for 16 307,000 DWT-class VLCCs.
The methanol- and LNG-ready vessels will cost about CNY839 million each and will be funded through a mix of internal resources and external financing.
The tankers will be built by Dalian Shipbuilding Industry and delivered between late 2029 and 2030.
COSCO also said it plans to lease all 16 vessels to Pan Cosmos Shipping Enterprises, a unit of COSCO Shipping Energy, under 20-year bareboat charter agreements.
The leases will provide long-term stable income and cash flow while expanding the scale of the group's ship leasing business, the company said.
In a separate statement, COSCO Shipping Energy said it expected annual rent for the 16 tankers to range from CNY680 million to CNY1 billion, once the deliveries commence.
The average daily rent amounted to CNY116,520/vessel, excluding tax, the firm added.
COSCO Shipping Development, a unit of China's COSCO Shipping Corporation, primarily deals with the production of standard dry cargo containers, refrigerated (reefer) containers, special containers and related equipment.
(Reporting by Aamir Shaik Khalid in Bengaluru; Editing by Jonathan Ananda)