Ocean Yield Orders Four Methanol-ready Tankers from China's GSI

August 2, 2023

Ocean Yield announced it has entered into an agreement to purchase four LR1 product tankers, to be built at Guangzhou Shipyard International (GSI) in China for delivery in 2026 and 2027.

The vessels will be built with a design enabling them to be converted to dual-fuel operation with methanol as fuel.

© Angelika Bentin / Adobe Stock
© Angelika Bentin / Adobe Stock

Upon delivery, the ships will be employed on 15-year bareboat charters to petrochemical company Braskem. The charter rate will have a variable element linked to the respective vessel's actual carbon emissions, incentivizing the charterer to keep emissions low.

The charter rate will have a variable element linked to the respective vessel’s actual carbon emissions, incentivizing the charterer to keep emissions low. Ocean Yield said it believes this is the first sustainability-linked transaction in the maritime leasing market.

Ocean Yield CEO Andreas Røde said, “Since Ocean Yield was established in 2012, sustainability and responsibility have been integrated parts of our core strategy as we seek to be a facilitator for the decarbonization of the shipping industry. In Braskem, we have a found a partner who shares our values and ambitions. We are excited to build on our relationship with Braskem and introduce the inaugural sustainability-linked lease to the Ocean Yield portfolio.”

The transaction will add approximately $300 million to Ocean Yield’s EBITDA backlog, the company said.

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