25-year lease deal for two LNG carriers
China Merchants Energy Shipping (CMES) announced it has entered into an extended transport contract with a subsidiary of PetroChina to transport two LNG carriers currently being constructed by CMES.
Wong Wah Environmental Services Limited has confirmed via stock exchange filing that CMES has signed an agreement with China Petroleum International Hong Kong on November 7, 2023.
Under this agreement, CMES will lease two 175,000 cubic meter LNG carriers to PetroChina’s subsidiary for 25 years beginning upon delivery of each vessel.
Financial details were not made public; however, CMES stated that rental price will be determined based on market freight rate for third-generation LNG ships.
CMES placed its order for two LNG carriers covered under this contract at China’s Dalian Shipbuilding Industry Company (DSIC) in December 2022.
At that time, the company planned on allocating up to $235 million per ship – totalling to a whopping total of $470 million for all vessels involved in its plan.
CMES announced that these vessels should arrive by the second half of 2026 and would feature energy-saving main engines and dual-fuel LNG engines that meet emissions standards when operating both on fuel or gas modes.
According to the company, this order fits within its strategic plans for developing fleet strategies and expanding low carbon business and clean energy transportation services.
