On June 25, the signing ceremony for the project of four 175,000 cubic meter LNG carriers, a collaboration between COSCO Shipping Energy, Shell, and Jiangnan Shipyard, was held in Shanghai.
Executives from all parties attended the ceremony, including Shell Executive Vice President Tom Summers, Global LNG Trading and Shipping Vice President Joshua Lim, COSCO Shipping Energy Deputy General Manager Zhang Yong, Shanghai COSCO Shipping LNG Chairman Cong Jian and General Manager Lin Nan, COSCO Shipping Ship Trading General Manager Zhang Yan, CSSC Shipping Trading Ship Business Department III Deputy General Manager Lu Xinwei, and Jiangnan Shipyard General Manager Xiao Wenlin.
Shell stated that through close collaboration among all parties, the orders for the four vessels were successfully finalized. These vessels not only balance performance upgrades with emission reduction but also lay a solid foundation for a long-term, safe, and efficient energy transportation system.
COSCO Shipping Energy Deputy General Manager Zhang Yong said: “We cherish the trust and friendship established in this cooperation and hope this bond will continue to deepen. Looking ahead, we see great potential for deeper collaboration across the entire LNG value chain. COSCO Shipping Energy will fully leverage its operational advantages to meet Shell’s global trading needs and provide firm support to Jiangnan Shipyard throughout the construction process.”
In early June this year, COSCO Shipping Energy announced that its indirect wholly-owned subsidiary, Yuanhai LNG Investment Co., Ltd., signed a construction contract with Jiangnan Shipyard for four 175,000 cubic meter LNG carriers. The total investment is RMB 6.445 billion, with payments to be made in five installments in RMB according to the ship construction progress. The new vessels are scheduled for delivery between 2029 and 2030.
For reference, Clarksons data shows that the current newbuilding price for a 174,000 cubic meter LNG carrier is approximately USD 248.5 million (about RMB 1.691 billion), a 3% decline compared to USD 255 million in the same period last year.
This is the first LNG carrier construction project between COSCO Shipping Energy and Jiangnan Shipyard. After delivery, the new vessels will be chartered by Shell’s subsidiary Shell Tankers (Singapore) Private Limited for a period of seven years (with the charterer having renewal options). The total rental income during the charter period is equivalent to approximately RMB 5.4 billion.
The four 175,000 cubic meter LNG carriers signed this time are Jiangnan Shipyard’s main mature ship type. They adopt an independently developed innovative design of a new generation large twin-skeg hull form, significantly improving the vessel’s hydrodynamic performance. Equipped with advanced equipment such as the latest WinGD XDF 2.2 main engine using LNG as primary fuel and integrating iCER and VCR technologies, low methane slip generators, optimized shaft generators, and a reliquefaction system, they reduce fuel consumption while significantly cutting carbon emissions and methane slip. This is Jiangnan Shipyard’s independently developed and designed latest generation of intelligent and flexible LNG transportation solutions, characterized by low comprehensive energy consumption, high low-temperature performance, and strong cargo capacity. Their technical performance, environmental indicators, and reliability have all reached world-class levels.
This project brings together leading enterprises in the global LNG industry chain and is a landmark achievement in the deepened collaborative development of the international energy market, China’s shipping industry, and high-end equipment manufacturing. The implementation of the project further strengthens the collaborative linkage among all parties in the LNG transportation value chain, laying a solid foundation for deeper future cooperation. With their excellent energy efficiency and low-carbon advantages, these vessels will significantly reduce the shipowner’s operating costs during operation, bring long-term stable commercial returns to all cooperating parties, and inject new momentum into the stable and efficient operation of the global clean energy supply chain.
This project is not only another major cooperation between COSCO Shipping Energy and a leading international energy company but also a key practice for the company to independently develop its international LNG shipping business. It will help consolidate its globally leading LNG fleet scale, steadily expand international cooperation, and solidify the foundation for globalized business development.
It is understood that COSCO Shipping Energy is a leader in China’s LNG transportation business. Its wholly-owned subsidiary Shanghai LNG and CLNG, in which it holds a 50% equity stake, are leading large-scale LNG transportation companies in China. As of December 31, 2025, COSCO Shipping Energy has participated in investing in and building 87 LNG carriers, of which 63 LNG carriers with a capacity of 10.662 million cubic meters are in operation, and 24 LNG carriers with a capacity of 4.375 million cubic meters are under construction awaiting delivery. Additionally, one bareboat chartered LNG carrier with a capacity of 174,000 cubic meters is in operation.
It is noteworthy that the four new vessels signed by COSCO Shipping Energy this time represent the second batch of orders in Shell’s plan for building eight 175,000 cubic meter LNG carriers at Jiangnan Shipyard. The contract for the first batch of four vessels was signed in January this year, with Minsheng Financial Leasing as the shipowner, Shandong Marine Energy responsible for commercial management, and Shell International Shipping responsible for technical operations.
This is also the first time Shell has long-term chartered large LNG carriers built at a Chinese shipyard. For a long time, Shell’s LNG carrier orders were mainly placed with Korean shipyards. The shift of some newbuilding orders to Chinese shipyards reflects that China’s high-end LNG carrier construction capabilities are increasingly gaining recognition from international energy giants.
Including the latest orders, Clarksons data shows that Jiangnan Shipyard currently holds an orderbook totaling 106 vessels with 11.17 million deadweight tons, including 20 VLACs, 28 VLECs, 6 medium-sized gas carriers, 38 container ships, 12 LNG carriers, and 2 LNG bunkering vessels, with delivery schedules extending to 2030.
