COSCO Shipping Development subsidiary inks LNG ship leaseback deal

COSCO Shipping Development announced its wholly-owned subsidiary, Oriental Fleet Shipping 08 Limited, entered into an agreement with ORYX LNG No.10 Shipping Corporation, a subsidiary of Mitsui O.S.K. Lines, Ltd. (MOL), for a sale and leaseback transaction involving a 271,000 cubic meter LNG vessel. Oriental Fleet will purchase the vessel for approximately RMB 2,578,933,500 and subsequently lease it back for 240 months (20 years) under a bareboat charter.

The total estimated rental income from the transaction is approximately RMB 3,182,465,000. This deal is expected to contribute to COSCO Shipping Development’s long-term stable income and cash flow, enhance its financial robustness, and expand its shipping asset portfolio. The vessel is anticipated to be delivered around July 2029.

The transaction, approved by the company's board of directors on July 29, 2025, aligns with COSCO Shipping Development's strategy to deepen "industry-finance integration" and become a leading shipping finance operator. This investment in a new, high-specification vessel also supports global efforts in energy conservation, emission reduction, and the sustainable development of the traditional industry.