Minsheng Financial Leasing has expanded its Shell-backed programme for medium-range (MR) chemical and product carriers by adding five new ships, bringing the total to 11 vessels. The deal was confirmed in a statement from Splash247, which reported that construction on these additional ships is set to begin at Guangzhou Shipyard International (GSI), a yard under China State Shipbuilding Corporation (CSSC) control.
The newbuilds will be based on GSI's 16th-generation MR design, designed to optimise hull and propulsion systems for reduced fuel consumption and emissions. According to the agreement, all 11 vessels will remain chartered to Shell Tankers, with Minsheng Financial Leasing owning and financing the ships. This structure allows Shell to secure long-term capacity without directly affecting its balance sheet.
The deal was signed by representatives from Minsheng, GSI, and China Shipbuilding Trading. No specific contract value or delivery schedule has been disclosed. However, sources earlier linked Shell with MR slots at GSI for a total order potentially worth around $230 million, covering delivery between 2029 and 2030.
This expansion follows other significant orders at GSI this year. As reported by Splash247, Evangelos Pistiolis-led Central Group booked ten product tankers earlier in the year for a deal estimated to be close to $500 million. Additionally, Pleiades Shipping and Nanjing Tanker have also added ships from GSI during 2026.
The agreement with Minsheng is part of an ongoing collaboration between the Chinese lessor and Shell, which includes four 175,000 cu m LNG carrier newbuildings at Jiangnan Shipyard. These LNG carriers are scheduled for delivery in 2028 and 2029, with Shell Singapore taking them on long-term charter.
Impact on Shipping Operations
This significant order underscores the growing trend of leasing agreements as a preferred option over outright ownership. For ship operators, such arrangements can provide flexibility and reduce financial risks while still ensuring long-term capacity commitments from major oil majors like Shell. This partnership also highlights the continuing importance of Chinese yards in global shipping, especially for projects involving international energy giants.