Alaska Tanker Co to reactivate tanker from four-year lay-up

The acquisition of the 2004-built, 193,100-dwt Suezmax tanker Alaskan Frontier is expected to be completed early November, after which OSG plans to reactivate the tanker, which has been in cold lay-up in Malaysia since 2019. OSG intends to make substantial investments in the vessel to allow commercial trade to commence by Q4 2024.

The acquisition of Alaskan Frontier signifies OSG’s ownership of all four Alaska-class crude oil tankers, which were built by National Steel and Shipbuilding Co in San Diego, USA, for operation in the Jones Act trades.

OSG president and chief executive Sam Norton said, "Upon completion of shipyard work, including lifecycle upgrades on the engines to improve performance and longevity, we believe Alaskan Frontier will provide additional transport capacity to meet the needs of our customers in a time of limited availability."

Mr Norton added the entire reactivation process, which is estimated to take about a year, will include installing a ballast water treatment system and other necessary improvements for commercial use, with a capital commitment for the project, including the vessel’s purchase price, of approximately US$50M.

The engine upgrades for Alaskan Frontier will be conducted by MAN Energy Solutions SE. This comprehensive modernisation of the four engines on board will enhance performance, fuel efficiency and prepare the engines for potential methanol fuel use in the future.

It is anticipated this fuel efficiency improvement will result in 15-20% fuel savings compared with the vessel’s current consumption, leading to a significant reduction in carbon emissions.

The substantial capital investment being made will enable the vessel to operate for an extended period with fewer maintenance costs.

It is not reported which shipyard has been awarded the retrofit installation work, or if this has been decided yet.