China and South Korea compete for Shell's eight VLCC orders

South Korea's three biggest shipbuilders are set to challenge the "leading" Chinese companies in the battle for orders for Shell's eight LNG powered VLCCs.
 
Although the order, worth more than $700m, was financed by Chinese financial institutions, competition for each order has become a common goal for South Korea's three giant shipbuilding companies, which are suffering from a shortage of orders.
 
Shell is negotiating financing plans with Minsheng Financial Leasing, ICBC Leasing and Bocomm Leasing, and plans to build LNG powered VLCCs.
 
In other words, Shell's VLCC orders are likely to be signed in the near future. The total value of the order is expected to exceed $700 million.
 
Shell's eight LNG powered VLCCs are the rare big orders this year as the global market for new shipbuilding suffers from COVID-19 outbreak.
 
Cumulative global orders for new ships in January-May period were 4.69m CGT, below the previous record of 6.28m CGT for the same period in 2016.
 
Source: Sarah Yu, XINDE MARINE NEWS

The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.