COSCO takes stake in MOL's three LNG newbuilds

COSCO Shipping Energy Transportation (CSET), the oil and gas shipping unit of COSCO Shipping Group, is buying into three LNG carriers Japan’s Mitsui OSK Lines (MOL) has lined up for construction at Hudong-Zhonghua Shipbuilding.

The Chinese state-owned shipping giant will acquire a 49% stake in each ship set to deliver from the CSSC-affiliated yard by 2028 for LNG trades in China.

The 174,000 cu m newbuilds will go on charter with Singapore-based ENN LNG, a subsidiary of China’s ENN Natural Gas. ENN supplies 10% of natural gas in China and operates an LNG terminal in Zhoushan, Zhejiang Province.

COSCO, through its energy shipping business, has stakes in over 70 LNG carriers. MOL contracted the trio in September last year after signing up for ten similar units, six of which will go on a charter with CNOOC Gas & Power Group, a subsidiary of China National Offshore Oil Corporation (CNOOC).