Idan Ofer’s Eastern Pacific Shipping has returned to Guangzhou Shipyard International (GSI) for tanker newbuildings.

The diversified shipping company, which previously ordered LNG propulsion suezmax tankers at the Chinese shipyard, has now struck a deal with the shipbuilder for up to four aframax product carriers.

The Singapore-based company has commissioned GSI to build two LNG dual-fuelled, 115,000-dwt product carriers to be delivered in March and December 2026. The deal includes an option for two additional vessels.

Eastern Pacific chief executive Cyril Ducau confirmed the tanker order.

Eastern Pacific is believed to be the first company to have ordered LNG dual-fuelled LR2 tankers this year.

Clarksons’ Shipping Intelligence Network shows 40 LR2 tankers were ordered so far in 2023 but all are conventional marine fuel ships except one newbuilding booked by Performance Shipping, which contracted one LNG-ready ship at Shanghai Waigaoqiao Shipbuilding.

One shipbuilding broker thinks most of the LR2 newbuildings ordered were done on speculation.

“There is a price difference of more than 10% between conventional marine fuel and dual-fuel LR2 tanker newbuildings … shipping companies would not commit to expensive ships unless there is a charter contract lined up for the ship.”

The price of the GSI LR2 tankers was not disclosed but brokers believe the company is paying more than $70m per ship. Chinese shipyards are seeking around $63m for a conventional-fuel aframax product tanker.

The 115,000-dwt product tankers’ contract with GSI is the second LR2 newbuilding deal that Eastern Pacific has inked this year.

In March, the company booked two vessels at SWS at a reported price of around $63m apiece to be delivered in February and May 2025.

This pair of product tankers will be powered by conventional marine fuel and they were previously booked by trader Vitol.

Shipbuilding insiders said Vitol decided to call off the SWS order as it had failed to secure employment contracts for the scrubber-fitted tankers.

Eastern Pacific was described as having “jumped straight into” the tanker slots when SWS put them up for sale.

The company currently has four LR2 tankers on the water. Two are running on conventional fuels and two are LNG dual-fuel ships. The tankers were constructed by New Times Shipbuilding in 2021 and 2022.

Eastern Pacific is one of the top shipowners in Singapore in terms of value and the number of ships it owns. It has 85 newbuildings that include large container ships, VLGCs, pure car/truck carriers, bulkers and tankers booked on its orderbook.

The company was one of the first owners to invest in LNG dual-fuel vessels as part of a commitment to reducing shipping’s carbon footprint. Its website shows it has 74 LNG dual-fuel ships including newbuildings.