COSCO Shipping Energy Transportation is expanding its gas carrier business with a new project to build an ethylene carrier worth 335 million yuan (50.2 million USD) in the Dalian heavy industry. The company's board in Shanghai and Hong Kong has confirmed that the construction of a 9,000 cubic meter capacity ship will commence through Hainan Zhaogang Shipping, a subsidiary controlled by Dalian COSCO Energy Transportation.
Investment and Construction Details
The total cost of the project is estimated at approximately 341 million yuan (51.1 million USD), which includes financing for construction, supervision, and other investment costs. This dual-fuel LNG ship is expected to be completed within 18 months from the date of the construction contract's commencement. This agreement still requires signing and completion of the parties' approval processes.
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Financing and Subsidiary Ownership
Hainan Zhaogang is 87 percent owned by Dalian COSCO Shipping Energy Supply Chain. The construction of this ship will be financed through internal resources and foreign loans, and COSCO Shipping Energy has also confirmed the provision of 122 million yuan in additional capital to its Dalian subsidiary. The company has also stated that it compared proposals from other independent yards before selecting this project.
This new investment emphasizes the overall expansion of COSCO Shipping Energy's fleet in the tanker and gas carrier sectors. Earlier this year, the group ordered two Panamax crude tankers with a capacity of 74,900 tons at COSCO Shipping Offshore Qidong for approximately 153 million USD and also purchased two MR product tankers with a capacity of 50,000 tons at Guangzhou Shipyard International for about 104 million USD.
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