Louis Dreyfus Co (LDC) is poised to be the first company to sign up for dual-fuel MR tanker newbuildings at K Shipbuilding, formerly STX Offshore & Shipbuilding.
The agricultural trader is set to sign an order for one LNG-fuelled 50,000-dwt product carrier plus one optional vessel at the Jinhae-based shipyard, according to shipbuilding players.
Officials at K Shipbuilding declined to comment on its newbuilding activities, citing contract confidentiality.
Shipbuilding players said LDC is paying about $52m for the firm type 2 chemical tanker. It will be fitted with a type C tank and is scheduled for delivery during the second quarter of 2024. The price reflects a cost of about $12m for dual-fuel propulsion and tanker rating.
They added that the vessel will be LDC’s first dual-fuelled tanker.
Last year, the Dutch commodity trader was reported to be planning to charter a single dual-fuelled propulsion MR tanker newbuilding, with an option for a second vessel to be built by China’s Chengxi Shipyard from CSSC Leasing.
But TradeWinds understands that the charter deal did not take place and the newbuildings were never ordered.
In an email LDC declined to comment on the order of the dual-fuelled MR tanker newbuildings at K Shipbuilding.
In its sustainability report, LDC said it exceeded its environmental reduction targets for 2020, with a 45% reduction in solid waste sent to landfill, a cut in shipping-related CO2 emissions of more than 6%, a new fleet of eco-efficient ships for its juice business, and hundreds of thousands of trees planted worldwide under reforestation and agroforestry projects.
LDC operates a fleet of about 200 chartered vessels for its own business and third-party customers. It charters bulkers from handysize through to capesize, containerships, and tankers for its vegetable oil, palm oil and ethanol shipments.
K Shipbuilding was formed in July when merger-and-acquisition specialist KH Investment and debt clearing company United Asset Management Co gave the former STX Shipbuilding a new lease of life by paying KRW 250bn ($223.4m) to the shipyard's creditors for a 95% stake.
The new owner of K Shipbuilding plans to upgrade the facility and wants it to become a “smart” shipyard and build carbon-neutral vessels.
K Shipbuilding’s orderbook consists of two aframax tankers, 12 MR tankers and six chemical tankers below 10,000 dwt. More than half of the newbuildings were contracted this year after a hike in steel plate costs.
