China Merchants Energy Shipping Expands into Shuttle Tanker Market
China Merchants Energy Shipping (CMES) is making a significant move into the shuttle tanker sector by placing an order for up to two new vessels at Dalian Shipbuilding Industry Co. (DSIC). This strategic decision was revealed in a recent regulatory filing, where the Shanghai-listed shipping arm of China Merchants Group confirmed a contract for one firm 154,000 deadweight ton (dwt) unit, with an option for a second vessel. The newbuilds will be constructed at the CSSC-controlled DSIC, with the first vessel expected to be delivered in 2028. The total investment for this project is approximately $256 million, which encompasses both the confirmed newbuilding and the optional unit.
This order signifies CMES’s entry into the specialized dynamically positioned shuttle tanker (DPST) segment, aimed at supporting deepwater oilfield developments for its primary clients. The company has already secured long-term time charter contracts associated with this project, with market sources indicating that the new vessels are likely to be chartered to CNOOC, ensuring employment from the moment of delivery.
Strategic Fleet Diversification and Future Prospects
CMES has been actively renewing its fleet across various segments and currently boasts a substantial shipbuilding program. The board approved the shuttle tanker project in December 2025, underscoring the strategic importance of diversifying its fleet and acquiring assets that promise stable earnings. The addition of these new vessels is expected to enhance the company’s tanker portfolio and broaden its footprint in offshore-related shipping.
As demand for shuttle tanker capacity continues to rise alongside increased activity in deepwater oilfields, CMES’s investment in this segment positions the company to capitalize on emerging opportunities. The firm aims to strengthen its operational capabilities and meet the evolving needs of its clients in the energy sector. By entering the shuttle tanker market, CMES not only diversifies its offerings but also aligns itself with the growing trend of offshore oilfield developments, which are becoming increasingly vital in the global energy landscape.
CMES’s foray into the shuttle tanker segment marks a pivotal moment for the company, reflecting its commitment to fleet modernization and strategic growth in the maritime industry. The upcoming vessels are set to play a crucial role in supporting deepwater oilfield operations and enhancing the company’s service offerings in the competitive shipping market.
