Chinese state-owned maritime transport giant COSCO Shipping has tapped compatriot vessel construction player Dalian Shipbuilding Industry (DSIC), part of China State Shipbuilding Corporation (CSSC), for a sextet of alternative fuel-ready tankers.
According to Greek shipbroker Intermodal, COSCO Shipping is expected to cash out $119.1 million for each of the six 307,000 dwt tankers. Once completed, DSIC plans to hand over the ships to COSCO between 2027 and 2028.
As disclosed, the vessels are going to be sent off to the Chinese maritime transport company with liquefied natural gas (LNG)- and methanol-ready specifications.
Owing to LNG, the most mature and most widely available alternative fuel at the moment, the tankers are expected to accomplish a 25-30% reduction in carbon dioxide (CO2) emissions. LNG could also enable the vessels to cut other pollutants, including sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter (PM).
Similarly, if converted to run on methanol—which has, together with ammonia, gained increased interest from maritime stakeholders—the ships could cut SOx emissions by up to 99%, NOx emissions by 80% and PM by 95%. Moreover, should green methanol be applied, the sextet could also achieve near-zero carbon operations.
In addition to arriving ready for conversion to these two environmentally friendly fuels, per data from Intermodal, COSCO’s upcoming vessels will have their ecological performance ‘enhanced’ through the installation of exhaust gas cleaning systems (EGCSs), otherwise known as scrubbers , which will further remove harmful pollutants to meet international regulations.
COSCO Shipping, one of the largest maritime transport players in the world, is said to currently own a fleet of around 251 oil and gas tankers, with a total capacity of 32.80 million (per late 2024 data). When all segments are included, the company reportedly operates a fleet of more than 1,500 units.
Last year, China’s shipowners splashed $123 billion into newbuilding ship orders, among which COSCO Shipping Lines was the runner-up, having spent $3.06 billion on 18 new Panamax containerships, in particular, ranging from 13,400 to 14,000 TEUs.
Moreover, among all vessel types booked at Chinese yards, tankers took the number one spot, with a total of 526 units worth $24.4 billion ordered.
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Dalian Shipbuilding signed multiple contracts to build tankers in 2024. For instance, in August, the company was commissioned by compatriot shipping major China Merchants Energy Shipping (CMES) for ten energy-efficient units, with deliveries scheduled for 2027 and 2028.
In December, COSCO Shipping Energy Transportation (CSET) shook hands with DSIC and COSCO Shipbuilding Trading for the construction of six eco-friendly 307,000 dwt crude oil tankers.