COSCO orders four LNG carrier newbuildings in US$950M deal

COSCO Shipping Energy Transportation Company has disclosed a deal with Jiangnan Shipyard to build four LNG carriers at a total cost of about US$953M. 

Jiangnan Shipyard has agreed to design, build, launch and equip the four 175,000-m³ LNG carriers, and to deliver them to COSCO Shipping Energy Transportation Company, with deliveries scheduled between 2029 and 2030. 

COSCO Shipping Energy Transportation is a publicly listed company on the Hong Kong Stock Exchange and the Shanghai Stock Exchange. It is controlled by China COSCO Shipping Corporation, the Chinese state-owned shipping conglomerate. The contract was signed by COSCO’s indirectly-owned subsidiary Future Ocean LNG Investment. 

"The four vessels under construction... are to support the significant initiatives including serving national energy strategies, optimising the structure and investment layout of LNG fleet, and seizing market development opportunities. Through this transaction, the group will reinforce and expand the shipping capacity of its LNG fleet," a statement from COSCO said.

Founded in 1994 as China Shipping Development, the company rebranded in 2016 as COSCO Shipping Energy Transportation, highlighting its focus on LNG and oil shipping. The company is headquartered in the Shanghai Free Zone. The company has been involved with investment and construction for LNG vessels in the past. 

More recently, in 2025, COSCO signed a sale and leaseback agreement with Mitsui OSK Lines (MOL) to purchase a 271,000-m³ super-size LNG carrier for about US$360M. 

Following delivery, scheduled for Q3 2029, COSCO’s wholly owned subsidiary Oriental Fleet will lease the vessel back to MOL subsidiary Oryx LNG. The total estimated charter hire payable by the charterer amounts to roughly US$445M.

The agreement came against the backdrop of a broader partnership between COSCO and MOL. The two companies have established a joint venture to build six 271,000-m³ LNG carriers at China’s Hudong-Zhonghua Shipbuilding, with deliveries slated between 2028 and 2031. The matching vessels secured long-term charter contracts with QatarEnergy.