Korean Shipyard to Build for Scorpio Tankers

Scorpio Tankers sign letter of intent with Hyundai Mipo Dockyard for two tankships.

New York-listed Scorpio Tankers has signed a letter of intent with Korea's Hyundai Mipo Dockyard for two additional fuel-efficient newbuild vessels at a purchase price of $34.0 million each.

The company says that the acquisition of fuel-efficient vessels is "essential" in providing a competitive edge to the company. "We believe that modernising our fleet with more fuel efficient vessels is essential in establishing a competitive advantage in our markets," said Emanuele Lauro, CEO and chairman of the board at Scorpio Tankers.

The vessels are due for delivery in January 2014 and will be built with new propulsion technology, including a 'B' type ultra-long stroke electronically controlled main engine, which are expected to reduce the vessels' fuel consumption by approximately 10% compared to existing designs.

The move is in line with its plans to acquire "modern, high-quality tankers through timely and selective acquisitions".