Oslo-listed Stolt-Nielsen's tanker arm has inked its deal to buy the remaining five chemical tankers from Peter Georgiopoulos’ Chemical Transportation Group (CTG) and will use the vessels to replace others being retired from the company's fleet.

TradeWinds reported on Friday that Stolt-Nielsen was poised to strike on the the CTG quintet of 26,000-dwt tankers – the AVIC Dingheng Shipbuilding-constructed, 27,500-dwt CTG Magnesium and CTG Mercury (both built 2017), and 26,000-dwt CTG Argon, CTG Bismuth and CTG Cobalt (all built 2016).

Stolt-Nielsen did not give details on how much Stolt Tankers is paying for the five vessels.

Brokers have reported that the company is paying $27.5m each ship, valuing the buy at $137.5m in total.

Trading plan

Stolt-Nielsen said the Chinese built vessels, which have stainless steel sections, will trade in the Stolt Tankers Joint Service.

“The purchase of each ship is expected to close between December 2020 and February 2021,” the company said.

Stolt Tankers president Lucas Vos said "This acquisition is an excellent opportunity for Stolt Tankers to replace ships being retired in the next few years, lowering our fleet age profile with competitively priced ships that can trade in any of our deep-sea lanes.

Vos added: “Newer, fuel-efficient ships help us reduce our carbon footprint while buying existing tonnage means capacity is not added to a market that doesn't need it.

“In a cyclical industry like ours, buying the right ships at the right price is the path to financial sustainability.”

CTG ordered the ships as newbuildings in 2014 priced at around $40m each.

The vessels have been trading in Odfjell’s chemical tanker pool.

Two of Stolt Tankers new purchases, the CTG Magnesium and CTG Cobalt under construction at AVIC Dingheng in 2016. Photo: Bob Rust