Container ship shipbuilding specialist Zhoushan Changhong International Shipyard has expanded into the LR2 tanker arena.
The Chinese shipbuilding and ship repairing shipyard has contracted up to 10 aframax product tanker newbuildings worth a total of $610m.
A European company has ordered four firm LR2 tankers plus option for four additional vessels while a Singapore-based company has signed up for two ships.
A Zhoushan Changhong official confirmed that his shipyard has diversified into the LR2 segment and declined to disclose the buyers’ names citing contract confidentiality.
Shipbuilding sources familiar with Zhoushan Changhong said the shipyard is scheduled to deliver the 115,000-dwt product carriers between 2025 and 2026.
The design of the LR2 tanker was developed by CIMC Oric. The product carriers which will be classed by ABS, will be built to meet the International Maritime Organization’s Tier III NOx standards and the Energy Efficiency Design Index (EEDI) Phase 3 standards. The 44 metres beam and 249.9 metres long new LR2 tankers will be fitted with open-loop scrubbers.
Shipbuilding sources said the Singapore and European companies are paying around $61m each for the aframax product carriers.
Zhoushan Changhong is known as a container shipbuilder. The Chinese shipyard diversified into the tanker segment end last year when it secured two MR tanker newbuildings from newly established Pro Tanker Investment.
The Marshall Island-registered firm is a sister company to Zhoushan Changhong. The design of the 50,000-dwt product carriers was developed by Shanghai Merchant Ship Design & Research Institute.
The ships will each have 12 tanks plus two slop tanks, are slated to deliver at the end of 2024 and early 2025.
Zhoushan Changhong has three facilities that are engaged in shipbuilding and ship repairing. Its orderbook consists of around 40 newbuildings including the product carriers.
Clarksons’ Shipping intelligence shows the orderbook of LR2 stands at 81 of which 40 were ordered this year.
Pantheon Tankers, Maran Tankers, Zodiac Maritime, Eastern Pacific Shipping, Union Maritime, Tai Chong Cheang Group, Dynacom Tankers Management, Thenamaris and Capital Maritime & Trading are among the shipping names that have ordered the aframax product carriers this year.
Greek shipowner Dynacom has booked the most, having ordered 10 firm vessels plus options for an additional four ships at DSIC Shanhaiguan Shipbuilding Industry Co — a subsidiary of Dalian Shipbuilding Industry Co.
French shipbroker BRS Group said higher tonne-miles in the oil product market and fleet renewal requirements on the back of tighter environmental control have backed the order for the LR2 newbuildings. The ship type also offers greater flexibility to trade on the crude and product market.
Banchero Costa shipping analyst Ralph Leszczynski said long-haul clean products trades have been growing in recent years as refining capacity expands in places such as India and the Middle East, with new modern export-orientated refineries, while older refineries in Europe and places such as Australia and South Africa close down as they find it financially uncompetitive.
