Union Maritime chief Laurent Cadji has opened up on a major push into the LR2 tanker business, with a newbuilding drive designed to grow the fleet while employing new technology to reduce emissions.
The UK-based shipowner has taken its LR2 orderbook to nine ships with deals for three more vessels split between two shipyards in Asia.
It extends a growth and renewal drive from the company that has seen investments in newbuildings comfortably ahead of the $1bn mark during the past two years.
Cadji told TradeWinds the LR2s would form a key part of the Union Maritime fleet, with dual-fuel engines just one aspect of the broader picture to reduce emissions.
Two of the three LR2s have been placed at HD Korea Shipbuilding & Offshore Engineering (HD KSOE), which announced a contract with a European owner for two tankers worth KRW 191.5bn ($141.4m), or $70.7m each, at the start of this month.
The pair, Hull No S580 and Hull No S581, are set for delivery in September and November 2027.
In a separate deal, Union Maritime has struck a single LR2 contract with Chinese state-owned Dalian Shipbuilding Industry Co. Brokers said DSIC’s subsidiary Shanhaiguan will be constructing the 115,000-dwt product carrier.
The newbuilding, Hull No P110K-70, will be delivered in November 2026.
“Union Maritime’s fleet of new LR2 vessels incorporate truly next-generation features,” Cadji said.
“They include dual-fuel LNG engines which significantly reduce pollutant emissions and particulate matter, as well as WindWings, a game-changing rigid sail technology that uses wind propulsion to deliver daily savings of up to 1.5 tonnes of fuel per wing and up to 6 tonnes of CO2 per wing on typical global routes.”
He added: “The vessels offer Union Maritime and its partners significant value. Not only by keeping pace with the evolving regulatory landscape but also in advancing Union’s fleet age-reduction strategy whilst innovating at pace, enhancing efficiency and lowering CO2 emissions.”
Union Maritime entered the LR2 tanker business in 2019 by buying the 105,800-dwt Bryanston (ex-Phoenix Dream, built 2005) from Mitsui OSK Lines for a reported price of $13.5m. VesselsValue shows the tanker is now worth $30.3m.
The latest deals add to the six Union Maritime LR2 newbuildings currently on order in China. The tankers are evenly split between Shanghai Waigaoqiao Shipbuilding, Cosco Shipping Heavy Industry Yangzhou (Cosco HI Yangzhou) and Yangzijiang Shipbuilding, with deliveries between the end of 2025 and early 2027.
TradeWinds learned that the two LR2 tankers at Yangzijiang are dual-fuel vessels and the company has options to upgrade the other seven newbuildings to LNG dual fuel at other yards.
Cadji explained: “The LR2s will form a key part of the Union fleet and will be managed by our industry-leading commercial and operational teams across our global offices.
“We are working at the same time with leading research and teaching institutions to develop and deploy bespoke wind training for both our shore and ship-based personnel.”
Last month, Union Maritime was reported to have ordered two MR tanker newbuildings at Wuhu Shipyard for delivery in March and June 2026.
It has doubled up the order of the 49,000-dwt product carriers at the Chinese shipyard by exercising the two option ships it held there. The latest duo is due to be delivered in September 2026 and January 2027.
Union Maritime has been active in the shipbuilding market for the last two years, ordering a total of 31 newbuildings costing the company more than $1.2bn.
Japan’s Fukuoka Shipbuilding is constructing two stainless-steel 19,900-dwt tankers for the company while Wuhu, Fujian Mawei Shipbuilding and Fujian Southeast Shipbuilding are building a series of 18,500-dwt IMO type 2 chemical tankers.
VesselsValue shows Union Maritime is due to take delivery of the 181,000-dwt capesize bulker Herun China (built 2017) by July this year. The company was reported to have acquired the ship at the end of last year for $42m and the market value of the bulk carrier is standing at $50.03m.
On the sales front, the online database shows Union Maritime has sold the 57,000-dwt supramax bulker Supra Oniki (built 2010) for $11.1m to an unnamed buyer.
