Shipowner Idan Ofer has splashed out nearly $1.5bn on a fresh series of dual-fuel containership newbuildings at Hyundai Heavy Industries.

Shipbuilding players familiar with the deal said Ofer-controlled Eastern Pacific Shipping has signed up for 11 LNG-fuelled boxships at the South Korean shipyard group.

Delivery of the 15,000-teu newbuildings is set to begin in 2022.

Eastern Pacific’s latest deal at HHI brings its total orderbook for 15,000-teu vessels at the Ulsan-based shipbuilder and its subsidiaries to 22 in just over two years, and its total investment to almost $3bn.

“[The] total [number of] containership newbuildings at HHI [yards] is now 22,” said a shipping source familiar with the deal.

He said five of the ships have scrubbers and 17 are dual-fuel vessels that can run on LNG.

TradeWinds is told that Eastern Pacific’s latest orders represent options from the company’s last order at the yard group.

Eastern Pacific chief executive Cyril Ducau declined to comment.

The Singapore company signed up for its earlier 11 vessels, including seven LNG-fuelled vessels, between the end of 2017 and last summer. All are to be built at Hyundai Samho Heavy Industries.

The outfit ordered more on the belief that LNG would be the fuel of the future for the sector, a source said.

“EPS [Eastern Pacific] strongly believes that as a shipowner, it needs to make a concrete commitment to the environment and reduce the carbon footprint,” he said. “One can easily see the fuel economics works versus a conventional vessel.”

Price estimates

The price tag for the company's latest order has not been disclosed, but one Asia-based shipbuilding broker said yards are seeking between $130m and $135m for a 15,000-teu, dual-fuel newbuilding.

“EPS has been very successful in investing in large containerships. It got a very attractive price for the earlier ships,” the broker said.

“The interesting thing about these 15,000-teu vessels is that they are very flexible to trade. EPS has already lined up employment for the earlier batch of newbuildings. It does not come as a surprise that it has ordered more ships.”

French liner giant CMA CGM was reported to have time-chartered five of Eastern Pacific's 15,000-teu scrubber-fitted ships for 10 years, paying $40,000 per day for each vessel. The shipowner was reported to be paying slightly more than $100m apiece for the ships.

Hyundai Samho delivered two of the five in June and July. The yard is scheduled to hand over the third ship in November. The other two newbuildings are due to roll out from dry dock in the first half of next year.

CMA CGM also locked in six dual-fuel newbuildings for 15 years at $55,000 per day after ordering the ships for $120m each.

They are slated for delivery between 2020 and early 2022.