China Merchants Nanjing Tanker Corporation is stepping up its return to the LR2 segment, launching a tender for four large product tankers less than a year after contracting its first pair of the type in roughly two decades.

The Shanghai-listed company, commonly known as Nanjing Tanker, is seeking bids for four LR2 product oil/crude oil carriers. The tender was published on September 19, with bids due by October 10. The vessels are required to comply with IMO Tier III emission standards and Phase 3 of the Energy Efficiency Design Index, or EEDI.

The process remains at the tender stage. No shipyard, contract price, delivery schedule or propulsion configuration for the four vessels has yet been disclosed.

If all four ships progress to firm contracts, however, Nanjing Tanker's LR2 newbuilding programme would grow to six vessels — establishing a new large-tanker segment alongside its established MR product tanker business.

From MR strength to larger product tankers

Nanjing Tanker already has two 115,000-dwt LR2 product/crude carriers under construction at Dalian Shipbuilding Industry Co (DSIC).

The contracts were signed in September 2025. According to Nanjing Tanker, the ships incorporate hydrodynamically optimised hull forms, energy-saving equipment and intelligent energy-efficiency management systems, with their EEDI performance meeting Phase 3 requirements.

The company described those ships at the time as part of its effort to adapt to changing international product trade patterns and the trend towards larger vessels.

As of the end of June 2026, Nanjing Tanker operated 73 vessels totalling 2.80m dwt, including 34 product tankers of 1.63m dwt, according to its interim report.

Its operating product tanker fleet remained heavily concentrated in MR tonnage: 20 owned MRs, 13 pool-operated MRs and one chartered MR. It had no LR2s in operation, while the two DSIC newbuildings represented 230,000 dwt of LR2 capacity under construction.

That makes the latest tender more than a routine fleet replacement exercise. It indicates that LR2s are becoming a meaningful new component of the company's product tanker strategy.

Long-haul trades support the move

The timing comes amid stronger product tanker earnings and longer trading patterns.

Nanjing Tanker's interim report said average Atlantic basket earnings reached $50,289 per day in the first half of 2026, up 118.77% year on year, while the Asia-Pacific basket averaged $32,606 per day, an increase of 52.74%.

The company attributed part of the market strength to disruption in Middle East product flows and buyers sourcing cargoes from more distant regions, increasing tonne-mile demand.

Nanjing Tanker has already been expanding beyond its traditional Asian trading footprint. Its MR fleet has undertaken longer-haul voyages linking the Middle East with the US Gulf, part of what the company has described as a push to extend its market presence “from east to west”.

LR2s, with significantly greater cargo capacity than MRs, give the operator another option for larger parcels moving over long distances, while their product/crude flexibility can broaden employment opportunities.

Supply growth remains the counterweight

The expansion is nevertheless taking place against a rapidly growing orderbook.

Citing Clarksons data, Nanjing Tanker said 41 LR2s were delivered worldwide during the first half of 2026. It expects overall product tanker fleet supply to increase by around 7% this year, with supply growth running ahead of demand.

That makes the latest tender a longer-term fleet positioning decision rather than simply a response to today's strong freight market.

For Nanjing Tanker, the next important details will emerge when the tender progresses: which Chinese yard wins the business, the final newbuilding price, delivery slots and whether the vessels incorporate alternative-fuel readiness similar to the company's existing newbuilding programme.