Eastern Pacific Shipping is to add suezmax tankers to its growing fleet as its appetite for newbuildings continues unabated.
The Singapore-based outfit is said to be in discussions for a pair of 158,000-dwt crude oil tankers at Shanghai Waigaoqiao Shipbuilding (SWS).
A shipping source familiar with the deal said Eastern Pacific has been offered delivery dates of late 2021 and early 2022.
While the owner is known to believe LNG will be shipping's fuel of the future, it is said to be looking to order conventional suezmax tankers instead of LNG-fuelled ships. The rationale behind the move is unknown.
If the Eastern Pacific order is confirmed, the deal would mark SWS' return to the sector after a six-year hiatus.
The yard sealed its most recent suezmax deal in 2014, when Tulshyan Group of Singapore signed up for five vessels.
SWS and Eastern Pacific declined to comment.
Change in strategy
Eastern Pacific is regarded as a spot market-orientated player in the suezmax segment but has been changing its strategy towards period employment.
Last month, Eastern Pacific was reported to have signed a charter deal with US conglomerate Koch Industries for the 164,000-dwt Nobleway (built 2010).
Koch will pay $35,000 per day over the 27-month charter, which equates to total revenue of almost $38m for the shipowner.
In December, Eastern Pacific signed up for two LNG-propelled suezmax tanker newbuildings, plus two optional vessels, at Guangzhou Shipyard International (GSI) for delivery during the first half of 2022. The ships are said to be costing about $72m each.
Eastern Pacific is said to be the first shipping company to have signed up for dual-fuelled suezmax newbuildings, which will use LNG as bunkers.
The order also helped GSI break into the suezmax sector. The state-owned yard is known for MR tankers but its Guangzhou Longxue site has rolled out VLCCs, aframaxes, LR2s and VLOCs.
Last month, Eastern Pacific was reported to have splashed about $771m on half-a-dozen 12,000-teu, high-reefer LNG-powered containerships at DSME, for delivery in 2022.
“This is a letter of intent. Eastern Pacific is ordering the neo-panamax containerships against [a] charter contract. It will firm up the newbuilding order once it seals the charter deal,” the shipping source said.