Euronav chooses ammonia as a fuel option for Suezmax newbuilding pair

Two Suezmax tankers on order at Daehan in South Korea for delivery in 2022, without named contracts, have been bought as resales by Euronav of Belgium. Some brokers are linking the pair of Suezmax tankers to Yasa Shipping of Turkey, which has a similar Suezmax tanker on order at Daehan for delivery in 2022.

The Euronav pair of Suezmax tankers are believed to be Hull No 5057 and Hull No 5058. Euronav has bought its pair of Suezmax tankers for US$113M en bloc.

The eco-type tankers are specified with scrubbers and ballast water treatment systems and Euronav states the vessels have structural notation to be LNG ready.

Euronav is working closely with the shipyard to also have a structural notation to be ammonia ready. This provides the option to switch to other fuels at a later stage.

Euronav chief executive Hugo De Stoop said “The current disruptions to the freight market have provided this opportunity and our strong balance sheet allowed us to act quickly on it. This is in line with our strategy of acquiring good assets at attractive points in the cycle.”

The tanker industry has been waiting for a sign of which fuel to choose after LNG dual-fuel, which is largely seen as a transition fuel. That a tanker industry ’influencer’ like Euronav has come out in favour of ammonia will boost the fuel’s credentials as part of the suite of fuels owners can use in the drive toward lower carbon emissions.

In January 2021, Avin International announced with New Times Shipbuilding and class society ABS, that it was converting a Suezmax newbuilding into ammonia fuel power.

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