CMES adding two LNG carriers at DSIC
China Merchants Energy Shipping (CMES) has revealed another order for two 175,000 cbm LNG carriers at compatriot shipbuilder Dalian Shipbuilding Industry Company.
The company plans to allocate up to $235 million per vessel, pushing the total to $470 million. The shipping heavyweight said that the vessels are expected to be delivered in the second half of 2026 and that the vessels would be equipped with dual-fuel LNG main engines and energy-saving technologies to meet the latest emission standards when operating both in fuel and gas modes.
CMES noted that the order was in line with the company’s development fleet strategy and expansion of low-carbon business and clean energy transportation.
Market sources indicate that around 10 vessels of the same size are being built for CMES at the yard. Data from VesselsValue shows six orders with deliveries spread from 2024 to 2027. CMES also has three Aframax tankers under construction at Dalian and one very large crude carrier (VLCC), according to VesselsValue.
The contract is being announced on the heels of a deal for two 175,000 cbm LNG carriers CMES signed with DSIC in September 2022.
The companies disclosed at the time that the two newbuilds would be powered by LNG-fuelled low-speed engines. The contract included options for another four vessels bringing the total up to six vessels. The two firm vessels are slated for delivery in 2026, while the delivery of the remaining four ships if ordered, would be spread across 2026 and 2027.
The latest order is likely to be an option from the said contract.
The September deal coincided with the delivery of the 300,000 dwt very large crude carrier New Aden, fitted with two pairs of rigid wing sails.
The fresh round of orders from CMES is being placed on the back of rising demand for LNG carriers helping the world’s top yards meet and exceed yearly targets, while also enabling some of the Chinese builders to foray into the high-tech shipbuilding field.
Chinese yards are investing strenuous efforts to catch up with their South Korean rivals, which are the world’s largest builders of LNG carriers. Namely, South Korean shipyards claimed 68 of the 78 vessel orders placed in 2021, Clarksons Research said.
In order to compete with South Korean shipbuilders, China is working on the expansion of its production capacity by building new yards.