China Merchants Energy Shipping (CMES) has exercised an option for a second shuttle tanker at Dalian Shipbuilding Industry Co (DSIC), doubling its debut programme in the specialised crude shuttle segment, according to Splash247.
The Shanghai-listed owner placed the original order through its Hong Kong subsidiary Associated Maritime Co at the end of last year, signing for one firm 154,000 dwt vessel plus an option, Splash247 reported. The two-ship package was valued at about RMB1.79bn, or roughly $256m at the time, with deliveries scheduled for 2028.
Shuttle tanker specifications and design
Procurement documents for the option ship show DSIC was selected in May, with delivery required no later than September 30, 2028, according to Splash247. The 154,000 dwt vessel is based on DSIC's DS05619-OS design and will be built to specifications incorporating requirements for Repsol projects and Petrobras DPST operations, the publication added.
Shuttle tankers transport crude from offshore production facilities and floating production, storage and offloading units (FPSOs).
According to Splash247, "The move takes CMES beyond the single-vessel entry announced at the start of the year."
The China Merchants shipping arm now has a two-ship foothold in this specialised segment.
Charter employment
CMES has already secured long-term time charter employment with core clients for the shuttle tanker programme, Splash247 reported. The publication noted that it reported in January that market sources expected the ships to go on charter to CNOOC.
Larger tanker newbuilding programme at DSIC
The shuttle tanker pair forms part of a much larger tanker newbuilding push at DSIC, according to Splash247. In March, CMES signed for ten 306,000 dwt very large crude carriers (VLCCs) worth RMB8.566bn ($1.24bn). The conventionally fuelled, scrubber-fitted ships are due between 2028 and 2030.
Last month, CMES also approved five more scrubber-fitted aframaxes at DSIC, with deliveries starting in 2029, Splash247 reported. The ships are intended for a new aframax pooling arrangement being developed with major international oil companies.
Order book summary
| Vessel type | Size (dwt) | Number of ships | Value | Delivery window |
|---|---|---|---|---|
| Shuttle tanker | 154,000 | 2 | RMB1.79bn (~$256m) for the pair | 2028; second by Sept 30, 2028 |
| VLCC | 306,000 | 10 | RMB8.566bn (~$1.24bn) | 2028–2030 |
| Aframax | Not specified | 5 | Not specified | Starting 2029 |
Shippers and operators: what to watch
For freight forwarders, 3PL operators, and tanker charterers, the CMES order book at DSIC adds a substantial block of new tonnage scheduled for delivery between 2028 and 2030. The two shuttle tankers are already covered by long-term time charter employment with core clients, according to Splash247, and the ten VLCCs are conventionally fuelled with scrubbers, which will allow them to burn high-sulphur fuel oil while meeting emission limits.
The five aframaxes, approved last month, are intended for a pooling arrangement with major international oil companies, per Splash247. This could alter how aframax capacity is offered on the market once deliveries start in 2029, although the source does not specify which companies are involved or the commercial structure.
Watch list
- Confirmation of the charter counterparty for the two shuttle tankers, with market sources in January expecting CNOOC, according to Splash247.
- Any further exercise of options or additional orders at DSIC as part of CMES's tanker expansion.
- Delivery timing for the ten VLCCs (2028–2030) and the five aframaxes (starting 2029), which will determine when the new capacity enters service.
Sources:
