Navig8 has forged a deal with a Chinese leasing company that will see it join the rush to book LNG-fuelled newbuildings by placing an order at Qingdao Beihai Shipbuilding Heavy Industry.
The Nicolas Busch and Gary Brocklesby-led ship operator has teamed up with CSIC Leasing to order up to four LNG-fuelled LR2 product tankers at the Chinese yard.
Gordon Shen, Navig8’s representative in Shanghai, signed the joint venture deal at a China State Shipbuilding Co (CSSC) signing ceremony in the Chinese city last week.
The partnership will order two vessels in an agreement that includes options for two more.
Navig8, a London-based owner, operator and pools giant, currently does not own any LNG-fuelled ships. A company spokesman did not respond to requests for comment this week.
Shipbuilding sources said state-owned Qingdao Beihai will construct the 110,000-dwt vessels, which will be fitted with type C bunker tanks. The cost and delivery dates of the newbuildings have not been disclosed.
“Qingdao Beihai is known for building large-size bulk carriers,” one shipbuilding expert said.
“This dual-fuelled LR2 newbuildings contract by Navig8 demonstrates the shipyard’s ambition to make a presence on the tanker segment. It will also be the shipyard's first-ever LNG powered newbuildings contract.”
Beihai first
Located in Beihai in China's north, Qingdao Beihai was previously under the wings of China State Industry Corp (CSIC) but is now under the control of newly merged CSSC.
Qingdao Beihai may have a good record in constructing bulkers, but it has only delivered two LR2s — the 110,000-dwt Ust Luga (built 2017) and Purovsky (built 2018) — to Cara Shipping in Singapore.
The yard also has pair of 50,000-dwt MR tankers on its orderbook. Shipbuilding players said this duo was ordered by CSIC Leasing, and they are slated for delivery during the second half of 2021.
Navig8 has a total of 16 MR and LR2 newbuildings from New Times Shipbuilding in China that have either been delivered over the last two years or will be handed over next year, according to Navig8’s website.
The tankers are either owned outright or through sale-and-leaseback transactions.
Navig8 has taken delivery of a series of eight LR2 newbuildings in 2018 and this year, all controlled through sale-and-leaseback deals. It has taken delivery of four MRs on a similar basis.
The VesselsValue database lists Navig8 with four MR tankers under construction at New Times Shipbuilding in China. The quartet was ordered late last year.
New Times has already launched one of the newbuildings and is scheduled to deliver the vessel — to be named the Great Epsilon — soon. The other three tankers are due to be handed over in 2020.
