MOL and CNOOC Sign Long-term Charter Deal for Six Newbuilding LNG Carriers

January 12, 2022

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced that on January 7, through a subsidiary, it signed a long-term charter contract for six newbuilding LNG carriers with CNOOC Gas & Power Singapore Trading & Marketing Pte. Ltd, a wholly-owned subsidiary of China National Offshore Oil Corporation (CNOOC). The vessels will be built at Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. in China, and are slated for delivery from 2024 through 2026.

The six vessels' main assignment will be to transport LNG imports to China under a long-term purchasing contract with CNOOC Group, one of China's major energy companies. MOL's solid track record in building LNG carriers in China in addition to its performance in the LNG carrier business and safety in navigation and cargo handling earned high regard from CNOOC Group, leading to the successful conclusion of the contract.

The project was realized through a partnership between MOL and COSCO Shipping LNG Investment (Shanghai) Co., Ltd (CSLNG). MOL and CSLNG already jointly own and operate total 17 LNG carriers for the ExxonMobil project (Note 1), an LNG transport project for China Petroleum and Chemical Corporation (Sinopec) (Note 2), and the Yamal Project (Note 3). Building on the success of these projects, MOL and CSLNG have also concluded Project Heads of Agreement (PHOA) for collaboration on the new project.

LNG is drawing attention in China as an alternative to conventional fossil fuel due to increased awareness of the move toward low-carbon and decarbonization. LNG demand in China is expected to continue to expand, making the nation the world's largest importer of LNG.

MOL continually addresses environment issues in line with "MOL Group Environmental Vision 2.1" (Note 4), and the group is unified in working to achieve net zero GHG emissions by 2050 and realize a decarbonized society. It will also further deepen and develop its knowhow and build an even stronger record of success in China as it seeks to contribute to the ongoing growth of China's LNG business as a multimodal shipping corporate group.

(Note 1) Please refer to January 17, 2011, press release:
Hudong-Zhonghua Selected to Build LNG Carriers for PNG and Gorgon Jansz LNG Projects

(Note 2) Please refer to April 30, 2013, press release:
MOL's Participation in China FOB Transportation Project

(Note 3) Please refer to July 9, 2014, press release:
MOL signs Ship Building Contracts with DSME for ice class carriers,
and November 2, 2017, press release:
MOL and China COSCO Shipping Jointly Own 4 LNG Carriers for Russia Yamal LNG Project

(Note 4) MOL Group Environmental Vision 2.1
https://mol.disclosure.site/en/themes/101

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