Teekay Tankers Order Four Tankships from Korean Yard

Press Release
Monday, April 08, 2013
Image credit Teekay Tankers

Teekay Tankers orders 4 LR2 product tankships from STX Offshore & Shipbuilding with options for 12 more.

The agreement is for STX of South Korea to construct four  fuel-efficient 113,000 dwt Long Range 2 (LR2) product tanker newbuildings for a fully built-up cost of approximately $47-million each.

The agreement also includes fixed-price options for up to 12 additional LR2 newbuildings that can be declared over the next 18 months. Upon delivery, it is expected that the vessels will operate in Teekay Corporation's Taurus Tankers LR2 Pool, which is one of the world's largest LR2 pools with approximately 20 LR2 product tankers.

The agreement with STX includes a favorable installment payment schedule, with the majority of the purchase price due upon delivery. The Company intends to finance the installment payments with its existing liquidity, which was approximately $327 million as of December 31, 2012. The Company expects to secure long-term debt financing for the four vessels prior to their scheduled deliveries in late-2015 and early-2016.

"The shift in global refining capacity east of the Suez Canal, development of new long-haul product tanker trading patterns, including the potential for increased U.S. exports, and a relatively modest orderbook, make the LR2 segment a particularly attractive growth area for Teekay Tankers," commented Bruce Chan, Teekay Tankers' Chief Executive Officer. "With their fuel-efficient design, which is estimated to result in 20 to 30 percent fuel savings compared to current vessels in the existing LR2 fleet, we believe these newbuildings will be very attractive to our customers. Furthermore, we believe the vessel deliveries are well-timed to benefit from expected improvements in refined product and global crude oil tanker market fundamentals."

Teekay Tankers currently owns a fleet of 27 double-hull vessels, including 11 Aframax tankers, 10 Suezmax tankers, 3 Long Range 2  product tankers, three Medium-Range product tankers, and has time-chartered in two Aframax tankers.

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

ERMA Bullish on Ballast Water Treatment

After having delivered several BWTS systems in Kita Nihon shipyard in Japan, one more ERMA FIRST BWTS was successfully installed onboard the Bulk Carrier M/V SCARABÉ(DWT: 60,

USS Freedom (LCS 1) Completes Rough Water Trials

The littoral combat ship USS Freedom (LCS 1) completed Seakeeping and Structural Loads Trials, commonly referred to as Rough Water Trials (RWT) in late March the Navy reported May 21.

Conrad Announces Management Team Changes

Conrad Industries, Inc. announced the appointment of Scott J. Theriot as Executive Vice President and Chief Operating Officer.   Johnny Conrad, President and Chief Executive Officer,

Tanker Trends

HSH Bank to Split Off Bad Shipping Loans

German lender HSH Nordbank could split off a "bad bank" for non-performing shipping loans as part of a plan to create a sustainable business model, according to a person familiar with the matter.

Gail to Sell LNG Supplies from US to Shell?

GAIL (India) Ltd has signed a preliminary deal with Royal Dutch Shell for the potential sale of liquefied natural gas (LNG) supply sourced from its portfolio, made up of US production,

How Do You Lose 100 Million Barrels of Oil?

Oil-market watchers are struggling to reconcile the large estimated oversupply in the market with the much smaller buildup of reported inventories and narrowing contango in futures prices.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1689 sec (6 req/sec)