Pantheon Tankers signs newbuilding deal for Suezmax duo in South Korea

Riviera reported in mid-February the major Greek shipowner had signed a letter of intent (LOI) with HD Hyundai for the construction of a Suezmax tanker. Shipbroking and market sources have now confirmed the deal has been finalised, with the owner opting to add one more vessel to the order.

Although pricing details have not been disclosed, shipbrokers estimate the cost of a new Suezmax at approximately US$87-88M. Notably, HD Hyundai revealed on 2 April it had signed a contract for two Suezmax tankers with Angola’s Sonangol Shipping, with a total contract value of US$177M, indicating the cost of each vessel is likely to exceed US$88M.

Pantheon Tankers, which currently oversees a fleet of 39 vessels, is also runnning an active newbuilding programme that includes six additional ships – two VLCCs and four Aframax/LR2 vessels – all ordered from Chinese shipyards.

South Korean shipbuilders gain traction

This newbuilding deal marks a shift in Pantheon Tankers’ ordering strategy. Looking at the other entities within the group, Alpha Bulkers, the dry bulk arm, has placed orders at Chinese shipyards, while Alpha Gas stands as the sole exception, operating an all-Korean LNG/VLGC/VLAC fleet. This approach, however, aligns with the broader industry trend of gas carriers being predominantly built in South Korea.

The surge in orders from shipowners at South Korean shipyards is becoming increasingly notable, especially following the proposed US port fees on Chinese-built vessels. Riviera has reported Evangelos Marinakis-led Capital Group is investing in VLCC newbuildings at Hanwha Ocean, with more deals expected to follow, contingent on the final structure of the proposed fees.

In early April, South Korean media presented data, citing shipbroker Clarksons, which revealed domestic shipyards secured 55% of global newbuilding orders in March, while China’s share was limited to 35%, in GCT terms. Official reports also show South Korean shipbuilders have accumulated a diverse range of orders, including LNG carriers, container vessels and tankers over the past weeks.