COSCO strikes LNG carrier sale-and-leaseback deal with MOL

In a filing to the Hong Kong Stock Exchange, COSCO’s wholly owned subsidiary Oriental Fleet disclosed it had entered into an agreement with Oryx LNG, a subsidiary of MOL, to purchase a 271,000-m³ vessel for about US$360M.

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

The lease period is set at 20 years. Upon its expiry, MOL will be required to purchase the vessel from COSCO for a nominal sum of US$1, payable alongside the final charter instalment.

COSCO underlined that ship leasing plays a vital role in its operations and finances, describing it as a key driver for the group’s future growth. The company also stressed that investing in high-quality shipping assets supports global energy conservation, emissions reduction and sustainability efforts, while advancing the transformation and upgrading of traditional industries.

The agreement comes 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. These vessels – matching the description of the ship covered in this deal – have already secured long-term charter contracts with QatarEnergy.