Multiple shipbroking sources have reported that Shell has contracted 10 MR2 tankers at Guangzhou Shipyard International, a subsidiary of the China State Shipbuilding Corporation (CSSC) Group, according to Riviera. These sources estimate the total order value at approximately US$500M - each vessel costing around US$48M - with deliveries expected between 2027 and 2028.
Riviera has learned that the previously signed Letter of Intent (LOI) with the Chinese shipyard for the construction of up to 10 MR2 tankers has now been formalised into a firm order. Shell declined to comment on the reported transaction.
Currently, Shell manages a fleet of 28 vessels, primarily consisting of LNG carriers and oil/chemical tankers, according to information on its website.
Shell was founded as a shipping company, launching its first oil tanker, the Murex, in 1892. In 2018, the company welcomed the fifth Murex vessel as part of a new generation of LNG carriers, marking 126 years since its first tanker purchase.
MR2 tankers have become a preferred choice among shipowners for newbuildings.
Data from Xclusiv Shipbrokers indicates that the MR2 orderbook-to-fleet ratio stood at 17.3% (in terms of deadweight tonnage) as of the end of September, up from 15.9% just a month earlier. MR2 tankers currently hold the second-largest orderbook in the tanker market, following the Aframax/LR2 segment.
Specifically, the existing fleet comprises 1,762 vessels with a total carrying capacity of 86.3M dwt, while the orderbook includes 300 ships with a combined capacity of 14.95M dwt, according to Xclusiv Shipbrokers. The majority of these newbuilds are expected to enter the market starting in 2026.
Renewal of the MR2 tanker fleet is necessary, as the largest share of vessels currently in operation falls within the 15-20 year age group, representing 24.7% of the fleet. Following that, vessels aged 11-15 years account for 24.3%, while those aged 6-10 years make up 22.8%.