How to become a tanker tycoon

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On the scrapping side, the Covid-19 lockdown in India means there is no dismantling of ships taking place. An MR2 tanker (1996-built Prato) and two smaller tankers were sold for recycling in early March but the market has gone very quiet since then. Global cash buyer GMS has used the time to extend its GMS Responsible Ship Recycling Program (RSRP) and to plan for an emergence from the lockdown. The GMS RSRP team has undergone training under a World Health Organisation (WHO) programme: the first online training session was given to seven safety officers in Alang, India on 8 April 2020. The session primarily focused on the current situation, with emphasis on detailed risk assessments and also on understanding the ‘Plan Do Check Act’ cycle in ISO. Working in Alang slowly and methodically resumed employment on 21 April by strictly following all safety measures. Yards have ensured that adequate safety measures, such as social distancing, safety masks, daily disinfection, and handwashing facilities are complied with.

On the newbuilding side, a contract of note was by AET, the energy logistics and tanker operating arm of the Malaysian state-owned energy group MISC Berhad. It announced that Chartering and Shipping Services SA, a subsidiary of the French oil major Total, will charter two LNG dual-fuel powered VLCCs due to be delivered from an unnamed shipyard in 2022. So far, there is only one LNG dual-fuel VLCC on order – the COSCO vessel on order at Dalian. AET has significant experience in supervising LNG dual-fuel tanker newbuilding projects. It has three Suezmax LNG dual-fuel shuttle tankers on order at Hyundai Heavy Industries and four LNG dual-fuel Aframax tankers under construction or launched from Samsung. Two of the AET Aframax tankers are in service with Norwegian state-owned oil and gas company Equinor.

AET has stated the two LNG VLCC newbuilds will be among the most environmentally friendly VLCCs in the market. When in service, they will emit around 20% less CO₂ greenhouse gases than conventional vessels, 85% less NOx and 99% less Sox; further, 99% fewer fine particles will be released. These vessels comply with IMO Tier III levels, the IMO 2020 sulphur cap and represent a significant step towards IMO’s ambition of reducing carbon emissions by 50% by 2050 from a 2008 baseline.

Making the announcement, MISC Berhad chairman of AET and president/group chief executive officer Mr Yee Yang Chien said: “As a Group, we took early and bold decisions to invest in LNG dual-fuel vessels and I am pleased to see the industry responding so positively to our strategy.”

Total Shipping & Trading senior vice president Mr Luc Gillet commented: “We have partnered with AET for many years and [this] signing is the next logical step in our continuing relationship”.

AET president and chief executive officer Capt Rajalingam Subramaniam, who is a past winner of the Tanker Shipping & Trade Industry Leader Award, said: “AET is investing to build efficiency in our partners’ energy logistics activities and this includes assisting them to meet their environmental targets. We were among the industry leaders in building and operating LNG-powered Aframax vessels and dynamic positioning shuttle tankers and these two new ships will be our first LNG dual-fuel VLCCs.”