Evangelos Marinakis-controlled Capital Maritime & Trading is to kick start the ordering of a new breed of VLCCs by inking the first order for an LNG-fuelled newbuilding at South Korea's Hyundai Heavy Industries.
HHI president Sam Ka was seen heading for Europe last week in connection with the deal, sources said.
“We understand Capital and HHI have arranged to meet to finalise the order,” a shipbuilding player said last week. “We believe Capital has attached several optional vessels to the newbuilding contract.”
Some shipbuilding players said the Greek shipping company is expected to "play it safe” by booking a lone 300,000-dwt vessel instead of several units as this will be the first vessel of its kind to be ordered.
But since the flurry of excitement surrounding the order talk, no futher information has emerged as to whether any contracts have been concluded.
Capital has not responded to requests for confirmation and comment on the order talk.
Letter of intent
Last month, TradeWinds reported that Capital had inked a letter of intent with HHI for up to 14 LNG-fuelled VLCCs worth more than $1.5bn.
The Greek owner is understood to be hoping to snare time-charter business for the vessels but is also prepared to trade some of them on a spot basis.
The cost of Capital’s LNG-fuelled VLCC newbuilding has yet to emerge but one broker suggested it would be about $110m.
“It will cost between $95m and $97m to order a conventional VLCC newbuilding. A dual-fuelled VLCC requires an additional $10m and $15m,” said the broker.
The company’s interest in LNG-fuelled tonnage is understood to have been spurred on by demand from oil majors, such as Shell, ExxonMobil and Total, who are pushing projects for this type of VLCC.
