Cosco Orders Four Methane Carriers for Shell Seven-Year Contract

Cosco Shipping has committed to ordering four new methane carriers as part of a multi-year service agreement with Shell, representing a significant strategic expansion in specialized LNG transportation capacity. This procurement decision reflects growing demand for energy infrastructure and demonstrates confidence in long-term energy markets, despite global energy transition pressures. The seven-year contract duration signals both parties' commitment to stable, predictable supply chain operations in the LNG sector.

For supply chain professionals, this development highlights several key trends: (1) major carriers are making substantial capital investments in specialized vessel categories, (2) long-term contracts provide operational stability and capital expenditure certainty, and (3) energy logistics remains a critical component of global trade flows. The order also indicates that despite energy transition discussions, LNG demand projections remain robust enough to justify new asset deployment. The transaction reflects broader market dynamics where integrated energy companies like Shell secure dedicated capacity through strategic partnerships with leading shipping operators.

This model—combining procurement commitments with long-term service agreements—reduces logistics risk for shippers while providing carriers with revenue visibility, a pattern increasingly common in industrial supply chains.