Evangelos Marinakis-controlled Capital Gas has boosted its fleet to nine LNG carriers with a surprise two-ship order.
TradeWinds understands the Greek shipowning company is behind two newbuildings in a package of contracts announced by Korea Shipbuilding & Offshore Engineering Co (KSOE), which controls the Hyundai yards grouping.
KSOE said that under the KRW 438bn ($387m) deal, Hyundai Heavy Industries will deliver two 174,000-cbm LNG carriers to an Oceanian company by the end of 2023. It did not name the contracting party.
The contract prices the vessels at about $193.5m each.
Market players said this suggests that the newbuildings may have been agreed before the recent sharp steel price rises, which have sent levels closer to $200m.
The ships are expected to have a significantly lower greenhouse gas (GHG) footprint, with reduced levels of methane slip, through the use of new main engine arrangements and shaft generators.
They will also be equipped with GHG emissions detection systems.
The duo is due for delivery in the fourth quarter of 2023.
LNG market analysts are upbeat in their forecasts for tonnage demand on the basis that longer-haul voyages from the US to Asia and the retirement of some steam turbine vessels due to tougher emissions regulations will require more vessels.
Competitor Greek shipowner Dynagas has already beefed up an existing order, adding four 200,000-cbm ships — double what was previously reported — to the two it had on order.
Maran Gas Maritime has also confirmed two options it was holding.
Potential mini-wave
The newbuildings are the first in a potential mini-wave of new orders as owners either confirm outstanding optional vessels or dive on remaining berths in light of the positive demand trends seen in the market.
TradeWinds reported in April that Danish shipowner Celsius Shipping had been in talks with shipyards for up to four berths.
This publication also flagged up that Capital Gas and Minerva Marine have been considering additional newbuildings.
These three companies are among those to have signed up to LNG tonnage during the last wave of ordering.
Capital Gas stepped on to the LNG stage in 2018 with an order for four firm speculative vessels and six optional slots.
It opted for Mark III Flex containment systems and XDF propulsion systems and later inched up its orderbook to seven ships.
The company locked away a first 2020-delivering LNG newbuilding to BP for three years, with optional hire periods totalling a further nine years.
BP later fixed two more vessels from Capital Gas for periods of at least seven years, with the option to extend the hire to 12 years.
To date, the owner has taken delivery of three ships — the 174,000-cbm Aristos I (built 2020) and the newbuildings Aristarchos and Aristidis I.
Another trio is due for handover in the next three months and a seventh will follow in the first quarter of 2023.
Of the nine newbuildings, five have been fixed on multi-year charters to BP and US producer and trader Cheniere Energy.
