Hyundai Heavy Industries has won a contract to build a series of suezmax shuttle tanker newbuildings worth KRW 355bn ($304m), in a scoop over rival Samsung Heavy Industries.
The South Korean shipbuilder said it signed a deal to construct three 153,000-dwt vessels that will be delivered by April 2022. Sources said it forged the deal with Malaysian-controlled AET Tankers.
Early this month, the Singapore-based tanker owner disclosed it would be ordering three shuttle tankers against long-term charter contracts from Brazil Shipping I, an entity controlled by Anglo-Dutch energy major Shell.
Details, such as the length of charters and the rates, were not disclosed.
AET, an arm of shipowner MISC, did not specify whether or not the ships would be dual-fuelled vessels that can run on LNG, which have been favoured by Shell in recent tanker tenders.
A source familiar with the deal said the shipowner is opting for conventionally-powered vessels.
Brazilian plan
Brazil Shipping I will operate the shuttle tankers in Brazilian and international waters when the contract begins in 2022.
MISC and AET were unable to confirm any reports of any orders being placed.
AET has been one of the shipowners pioneering the use of LNG as a fuel.
MISC president and group chief executive Yee Yang Chien has said: “We are taking big bets as far as LNG fuel. For us, it is a priority for all future contracts."
This year, the owner put two LNG-fuelled, aframax tanker newbuildings — the 113,416-dwt newbuilding Eagle Brasilia and Eagle Bintulu — into operation for Shell.
In October, it named two LNG-fuelled, 123,000-dwt DP shuttle tanker newbuildings — the Eagle Balder and Eagle Blane — which were contracted against charters with Equinor.
All four vessels were ordered at Samsung Heavy Industries.
AET is also building another conventional diesel-powered, 152,700-dwt, DP2 shuttle tanker at SHI for Brazil Shipping I against a contract signed last year.
Commenting on the suezmax newbuildings for Shell, an industry observer said: “HHI and Samsung Heavy Industries were competing for the [Shell] project and many were expecting Samsung to win because of their long working relationship."
He added that the contract signing with HHI would be taking place imminently.
Separately, AET is competing for another clutch of suezmax tankers in a tender launched by Brazilian energy company Petrobras earlier this year.
Sources said the company is in "hot pursuit" of the business, which TradeWinds reported in July.
Shipowners in South Korea and China had been approached to build the vessels.
