CSET said on Tuesday that a unit of its subsidiary Cosco Shipping LNG Investment (Shanghai) has entered into shipbuilding contracts with Jiangnan for four LNG carriers, each with a capacity of 175,000 cbm.
According to CSET, the order is worth 6.445 billion yuan ($953 million), or approximately $238 million per vessel.
However, this price likely includes additional costs, as shipbuilding sources said each LNG carrier is expected to cost approximately $220 million.
The four LNG carriers are scheduled for delivery between 2029 and 2030.
Upon delivery, the LNG carriers will serve charter deals with Shell Tankers (Singapore) for a term of seven years.
The charter deals also include an option and are worth approximately 5.4 billion yuan ($798 million), CSET said.
The company’s order for four LNG carriers represents a “significant” initiative to support national energy policy, optimize the structure and investment layout of its LNG fleet, and capitalize on market opportunities, it said.
Through this transaction, the group will strengthen and expand its LNG fleet capacity, enhance its independent marketing and operational capabilities, and reinforce its international footprint, CSET said.
As of the end of March this year, CSET had invested in 87 LNG carriers via CSLNG and CLNG, according to its website.
This includes 65 LNG carriers in operation and 22 carriers on order, with one vessel bareboat chartered.
