Shell has selected two companies to order product and chemical tanker tonnage against charter contracts originally floated under the name Project Solar.
Newbuilding sources revealed that Chinese financier ICBC Leasing is in talks with New Times Shipbuilding in China over a series of more than 10 MR IMO type 2 tankers for the Anglo-Dutch energy major.
Contracts not yet signed
TradeWinds understands that the contracts have yet to be signed.
Separately, Eships, the shipping arm of the Dubai-based Tristar Group, is believed to be contracting six 25,000-dwt, IMO type 2 product tankers at Hyundai Mipo Dockyard in South Korea.
Tristar has worked with Shell previously on the energy major’s so-called Project Silver business in 2012, when it contracted six 52,000-dwt vessels against bareboat charters. That was part of a 50-vessel newbuilding haul.
Eships did not respond to TradeWinds' request for comment.
It is unclear whether further shipowners or orders will emerge in connection with the Shell project.
Previous partner
South Korean owner Sinokor Merchant Marine, which had previously been a key supporter of the oil and gas giant by ordering 30 Project Silver ships, has also been mentioned by brokers as a company which had been looking at the business.
Shell has consistently declined to comment on commercial matters relating to its shipping business.
TradeWinds reported in November that Shell, through its often favoured broker Clarksons, was tapping up shipowners for up 30 product tankers and chemical carriers worth an estimated $1.2bn plus.
At the time brokers detailed that Shell was making enquiries for up to 16 handysize chemical carriers comprising 10 firm ships with three additional pairs of options.
These would appear to be the vessels that ICBC is trying to firm up.
Additional ships required
Shell was also said to require two 50,000-dwt MR tankers with the same combination of two pairs of optional slots and a further eight IMO type 2 MR tankers — that are capable of carrying additional grades of chemicals — made up of four newbuildings plus two sets of two optional slots.
The newbuildings linked to Eships look set to account for part of this business.
Brokers said the picture is still unfolding and that Shell may have slimmed its original requirement or be in the process of lining up other owners to back these vessels.
Shell has previously secured tanker tonnage against bareboat or leaseback deals.
Brokers price scrubber-fitted MR newbuildings of about 50,000 dwt at $35.5m to $36m per vessel.
Other factors, such as Shell’s specification for Interline coating on some ships, the number of tanks on the IMO type 2 vessels and fuelling choices, could raise the price by $4m to $5m, one broker said.
