# China Merchants Energy Shipping Places $1.24bn VLCC Order
China Merchants Energy Shipping has committed $1.24bn to a newbuilding programme, contracting 10 very large crude carriers (VLCCs) with Dalian Shipbuilding Industry Corp. The order represents a significant investment in crude oil transport capacity and underscores the continued demand for modern tanker tonnage among Chinese operators.
VLCCs, typically ranging from 300,000 to 320,000 deadweight tonnes, represent the industry standard for long-haul crude oil transportation. The vessels’ size and efficiency make them economical for major trade routes, particularly those linking Middle Eastern producers to Asian refineries. Dalian Shipbuilding, one of China’s premier shipyards, has established itself as a preferred builder for large tanker tonnage, benefiting from competitive pricing and advanced construction capabilities. This order reflects broader trends in the tanker sector, where owners seek newer, more fuel-efficient vessels to comply with evolving environmental regulations and reduce operational costs.
The newbuilding commitment signals confidence in medium-term crude oil demand despite ongoing energy transition pressures. For the shipping market, sustained orders from major Chinese operators support shipyard capacity utilization and indicate owners’ expectations of continued profitability in crude transport. Market participants will monitor the delivery timeline and whether additional orders follow, as this could influence newbuilding prices and slot availability at major Asian yards over the coming years.