Nanjing Tanker Expands LR2 Fleet with Four-Ship Tender

Nanjing Tanker, a subsidiary of China Merchants, is set to expand its product tanker fleet with the launch of a tender for four additional LR2 tankers, potentially tripling its newbuilding exposure in the segment from two ships to six. The Shanghai-listed owner, inviting bids to construct these LR2 product/crude carriers, has set a submission deadline for October 10, 2026. According to sources, the tender specifications call for ships compliant with IMO Tier III emissions rules and EEDI phase three requirements. No price, delivery schedule, or propulsion arrangement has yet been specified, as the project remains at the tender stage and should not yet be treated as a firm four-ship order.

Background and Existing Fleet

Nanjing Tanker, which operates 73 ships totalling approximately 2.8 million dwt at the end of June 2026, including 34 product tankers, is currently in the midst of a significant fleet renewal programme. The company already has two 115,000 dwt LR2 tankers under construction at Dalian Shipbuilding Industry Corporation, contracted in September 2025 for delivery by October 2028, with an estimated cost of around $72m to $74m per ship. This expansion into larger product tonnage comes as part of a broader strategy to stay competitive in the global tanker market.

Newbuild Programme and Market Context

The tender for the additional LR2 tankers is part of Nanjing Tanker's push into larger product tonnage. Earlier this year, the company booked three 6,600 dwt stainless-steel chemical tankers, building on a programme that already included LR1s, the original LR2 pair, and an ethylene carrier. Additionally, in July 2026, Nanjing Tanker approved four additional 50,000 dwt MR product/chemical tankers at Guangzhou Shipyard International for up to $182.8m, with deliveries scheduled across 2028 and 2029.

The LR2 segment is becoming increasingly attractive due to its larger capacity, making it an ideal choice for operators seeking to reduce unit costs and improve efficiency. However, the high initial investment required for these larger vessels presents a challenge for many operators. Nanjing Tanker's move to diversify its fleet with LR2 tankers underscores the growing importance of this segment in the global tanker market.

Implications for Operators

The expansion of LR2 tonnage by Nanjing Tanker could have significant implications for the broader tanker market. As an operator with a substantial presence in the MR segment, Nanjing Tanker is making a strategic shift towards larger vessels, which could influence market dynamics. This move may attract other operators to reassess their fleet structures and consider the benefits of larger tonnages. For existing LR2 operators, Nanjing Tanker's commitment to this segment may lead to increased competition for charter space and potentially higher rates as the fleet size grows.

Moreover, the compliance with IMO Tier III emissions rules and EEDI phase three requirements signals a growing trend towards environmental standards in the tanker industry. Operators across the board will need to consider the implications of these regulations on their existing fleets and future investments. The push towards more sustainable shipping practices, including the adoption of cleaner technologies, is likely to become a key consideration for ship owners and operators in the coming years.

For Nanjing Tanker, the expansion into larger product tonnage not only enhances its competitive position but also aligns with the broader trend of fleet renewal and diversification in the tanker sector. As the company continues to invest in advanced technologies and sustainable practices, it sets a new benchmark for other operators in the market. The practical consequences for operators will be a mix of increased competition, higher capital investment requirements, and the need to adapt to more stringent environmental regulations.