Japan’s Iino Kaiun Kaisha (Iino Lines) has contracted the country’s first dual-fuel methanol VLCC.
The company said the eco ship will be delivered from the domestic Nihon Shipyard in 2027, for charter to compatriot Idemitsu Tanker.
The VLCC is based on a design concept developed by a consortium comprising Iino, Idemitsu, the shipyard and giant Japanese owner NYK.
No price has been given, but UK shipbroker Clarksons quotes a new VLCC as currently costing $129m.
The vessel can use methanol as fuel in addition to conventional fuel oil and is equipped with a shaft generator that produces electricity by using the rotation of the main propeller shaft.
“This initiative embodies one of the key strategies in our mid-term management plan,” Iino said, referring to its aim of “realising a decarbonised society”.
The tanker is 339.5 metres long, with a capacity of 309,400 dwt.
Iino owns three VLCCs built in 2020 and 2021 in a mixed fleet of tankers, bulkers and gas carriers.
It has five newbuildings on order: three VLGCs, including two ammonia-capable vessels, a handysize tanker and an MR1 product tanker.
Clarksons lists 74 VLCCs now on order worldwide.
Owners diving in
ShipFinex noted a surge in tanker newbuilding deals sparked by a rise in earnings.
“Tanker investments are on the rise, with shipowners diving into newbuilding contracts despite the challenges posed by environmental concerns, future vessel design uncertainties and long-term oil demand,” the company said.
UK broker SSY had already identified tanker orders hitting their highest level since the first three months of 2006 during the third quarter of this year.
ShipFinex tallied 58 VLCCs contracted this year, the busiest period since 2016.
It said: “40% of the current fleet is over 15 years old, spurring new investments to replace ageing vessels, especially in handy and LR1/panamax categories, which have seen rare growth.”
Newbuilding prices have risen 55% since 2020, but secondhand values have increased even more — up between 100% and 165% — making new ships a more attractive long-term investment, ShipFinex explained.
