As LR2 builders' numbers decline, Maersk confirms orders

Maersk Tankers has 10 LR2 newbuilding slots reserved at Dalian Shipbuilding, and this week announced that board approval had been given to go ahead with the conversion of six of those slots into firm contracts.

In theory, these six LR2s will join the other 11 LR2s in the current Maersk Tankers fleet. However, five of the existing LR2s will be 15 years old or older when the newbuildings are delivered.

Given the age of those vessels, it is conceivable that these six new vessels are replacements. However, the growing oil products demand, such as the first cargo of condensate from Wheatstone, Australia (see image) may mean the ageing Maersk vessels remain employed after the new vessels are launched.

Dalian Shipbuilding or one of its sibling yards has built eight of the current LR2s in the Maersk Tanker fleet, and currently has 10 LR2 orders on its books in total (including the Maersk Tankers' six).

Today, according to VesselsValue, the LR2 orderbook stands at 49 vessels, distributed over just nine shipyards including Dalian Shipbuilding. In the last decade, 25 shipyards took part in building the current live LR2 fleet of 255 vessels. Dalian is now one of a handful of yards committed to building LR2s.