State-owned shipbuilding groups China Shipbuilding Industry Corp (CSIC) and China State Shipbuilding Corp (CSSC) are set to secure a raft of VLCC-newbuilding orders from China Merchants Energy Shipping (CMES).

Sources say the Shanghai-listed tanker and bulker player is finalising contracts with CSIC’s Dalian Shipbuilding Industry Corp (DSIC) and CSSC’s Shanghai Waigaoqiao Shipbuilding (CSSC) for three vessels and two options each.

A source familiar with both groups tells TradeWinds that CMES started newbuildings discussions with the yards last summer.

“CMES