(Yicai Global) Dec. 6 -- China Merchants Energy Shipping has ordered two liquefied natural gas carriers and six Roll-on Roll-off ships, which are specialized cargo vessels for wheeled vehicles, worth USD1.1 billion to meet the Chinese shipping giant’s rapidly growing demand for long-distance transport of these commodities.

China Merchants Energy is buying two LNG carriers, each with a capacity of 175,000 cubic meters, from Dalian Shipbuilding Industry and China Shipbuilding Trading at a cost of USD470 million, the Shanghai-based company said yesterday. They should be delivered in the second half next year.

And it is ordering six RoRo carriers, each with a capacity of 9,000 car-equivalent units, from affiliate China Merchants Energy Shipping, for USD597 million, the firm said in a separate statement yesterday. They will be the world’s biggest and most advanced vessels of their kind designed to meet the needs of long-distance marine transport.

China Merchants Energy reserves the right to change the order to four instead of six at the agreed price, it added. The first two ships should be delivered no later than the start of 2026 and the rest by early 2027.

The LNG vessels and the RoRo ships will be equipped with the latest dual-fuel engines, with both oil and gas burning modes that meet the strictest emissions standards adopted by the International Maritime Organization, it said.

Judging from the latest orders, it would appear that China Merchant Energy is no longer interested in boosting capacity through the upgrading to existing ships.

The firm has already ordered four LNG vessels from Dalian Shipbuilding this year. And unit China LNG Shipping Holdings, together with four other international shippers, ordered 12 LNG carriers earlier this year which will be leased long-term to Qatar Energy.

The new RoRo vessels are much needed, for a lack of space on auto-transporting vessels has been constraining Chinese car exporters, preventing them from meeting booming overseas orders.

China Merchants Energy's share price [SHA:601872] dipped 0.9 percent to close at CNY6.19 (USD0.88) today.

Editor: Kim Taylor