Idan Ofer’s Eastern Pacific Shipping has turned to South Korea’s Hyundai Heavy Industries for talks on a further tranche of newbuildings, TradeWinds understands.
The diversified shipping company is said to be finalising an order for up to four dual-fuel MR tankers with the group's Hyundai Mipo Dockyard (HMD). The deal would be for two firm newbuildings for delivery in late 2021, plus two optional units.
Eastern Pacific and HMD may be able to conclude the newbuilding contract before the end of the year, according to shipbuilding sources.
LOI lapsed
Meanwhile, Eastern Pacific's letter of intent (LOI) for a similar deal at STX Offshore & Shipbuilding has lapsed.
The shipbuilding source added: “Eastern Pacific did not enter an official newbuilding contract with STX on the MR tankers. Instead, it will have the ships built at Hyundai Mipo."
Eastern Pacific and STX Offshore signed the LOI in July.
Officials at Eastern Pacific declined to comment on the company’s activities.
Shipbuilding market watchers said Eastern Pacific appears to be doing a lot of newbuilding business with the Hyundai shipbuilding group.
TradeWinds understands that in addition to the MR tanker talks, its has also signed a LOI with HMD for a single 7,500-cbm LNG bunker vessel.
“HHI is giving good slots, good terms and attractive shipbuilding prices to Eastern Pacific,” a source familiar with the company said. “These are hard for the company to refuse.”
Singapore-based Eastern Pacific has two 38,000-cbm LPG carriers under construction at HMD.
The pair were ordered last year at a reported price of about $49m each. The first vessel, to be named the Winnipeg, is due for delivery soon, while the second ship, to be named the Yukon, is scheduled for delivery early next year.
LNG power
Eastern Pacific has also spent close to $3bn on containerships at HHI sister yard Hyundai Samho Heavy Industries in just over two years.
It has commissioned the Mokpo-based shipbuilder to build 22 units of 15,000 teu of which 17 will be dual-fuel vessels and the remaining five will be fitted with scrubbers. Hyundai Samho has already delivered three boxships — the CMA CGM Argentina, CMA CGM Mexico and CMA CGM Panama.
Eastern Pacific has shown a lot of interest in LNG-fuelled vessels. It is also one of the bidders for BHP’s dual-fuel newcastlemax bulker newbuildings. The firm believes that LNG will be shipping's fuel of the future.
Eastern Pacific also has a pair of dual-fuel LR2 product carriers on order at New Times Shipbuilding.
The two vessels are part of a four-ship order placed with the Chinese shipbuilder in March, set for delivery in 2021.
The second two LR2s will be fitted with scrubbers.
STX Shipbuilding and Japan’s Onomichi Dockyard are also building two conventional MR tankers for Eastern Pacific.
In the chemical tanker sector, Eastern Pacific has one 21,000-dwt vessel being built at Asakawa Shipbuilding and two 19,000-dwt units at Kitanihon Zosen. They are slated for delivery next year.
Eastern Pacific has also been active in the sale-and-purchase market. It bought three large LPG carriers from Neu Gas Shipping of Germany. The vessels were the 60,243-cbm Helsinki (ex-George N), Denver (ex-Ernest N) and Tokyo (ex-Jenny N, all built 2009).
Eastern Pacific has a trading fleet of 150 vessels.
