COSCO Shipping Energy Transportation plans to enter into a RMB 1 billion shipbuilding contract with Qidong Offshore Engineering.

On April 16, 2024, COSCO SHIPPING Energy Transportation Co., Ltd. (COSCO Haineng) issued an announcement announcing that the company and its wholly-owned subsidiary Hainan COSCO SHIPPING Energy Transportation Co., Ltd. plan to sign two contracts with Qidong COSCO SHIPPING Offshore Engineering Co., Ltd. (Qidong Offshore Engineering) The construction contract of the Panamax crude oil tanker, the total investment of the project is approximately RMB 1.043 billion. According to the contract, the tax-inclusive cost of each ship is 0.509 billion yuan, and both new ships are scheduled to be delivered and put into operation in 2028. It is worth noting that the new ships will adopt advanced environmental protection and energy-saving technologies, including clean power systems reserved for biofuels and methanol fuel, and be equipped with intelligent systems to improve operational efficiency. COSCO said the investment will effectively supplement the company's future fleet capacity. After the delivery of the new ships, it will help to optimize the age structure of the company's overall fleet, maintain the stability of its fleet size in the domestic oil transportation market, and better balance the market demand of domestic and international crude oil transportation business, so as to continuously consolidate and enhance the company's market share and competitiveness in the industry.