MOL pens deal with BOCOM Leasing for LNG carrier trio

Japanese shipping company Mitsui O.S.K. Lines (MOL) has entered into a lease agreement for three new LNG carriers with Bank of Communications Financial Leasing Co (BOCOM Leasing).

Image credit MOL

The three 17,400 cbm LNG carriers are under construction at Hudong-Zhonghua Shipbuilding (Group).

The lease has been carried out through a joint venture with COSCO SHIPPING LNG Investment (Shanghai), CNOOC Gas and Power Singapore Trading & Marketing, and CETS Investment Management (HK).

This is MOL’s first contract with BOCOM Leasing, a subsidiary of Bank of Communications Co., Ltd. and the largest leasing company in China.

“In the “Regional Strategy” of the “BLUE ACTION 2035” management plan, MOL sets its sights on expanding business in emerging markets, including China. This lease agreement was achieved with a local financial institution in collaboration with a Chinese partner, in line with MOL’s regional strategy,” MOL said commenting on the lease.

“Through these initiatives, MOL will expand its funding sources and diversify its funding methods to strengthen its competitiveness, and it aims to realize a “regional strategy” while increasing its presence in China and other Asian markets.”

MOL signed a massive deal covering six 174,000 cbm LNG carriers with Hudong-Zhonghua Shipbuilding back in January 2022. The deal was worth an estimated $1.8 billion.

The company said at the time that the project’s participants would include China National Offshore Oil Corporation (CNOOC) and China COSCO Shipping.

After the delivery to MOL, CNOOC Gas & Power will charter the ships.