The latest reported tanker newbuilding orders seem to be based on conventional fuel and the low prices on offer
While there have been a number of reports of tankers contracted with LNG-power or options to convert to an alternative fuel at a later date, the latest orders reported by BRL point to conventional fuels and low prices as the main drivers.
BRL’s latest Weekly Newbuilding Contracts noted that Asian energy company GS Energy has ordered three VLCCs at just US$90M each from Hyundai Samho. At this price, it is unlikely there is an LNG option or an option to convert to alternative fuels, which adds between US$6M to US$10M depending on the specification.
The transaction is an internal South Korean deal, with the VLCCs going on bareboat charter from delivery in 2022 for 10 years to Hyundai Merchant Marine.
In other tanker news, Greek owner Thenamaris is reported to have contracted two MR2 tankers at US$36M from Hyundai Mipo, although it appears the blocks will be built at Hyundai Vinashin in Vietnam.
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