Teekay orders four LR2 product tankers from STX

08 Apr 2013
Teekay bucks the trend with an order for four product tanker newbuildings

Teekay bucks the trend with an order for four product tanker newbuildings

Teekay Tankers has entered into an agreement with STX Offshore & Shipbuilding of South Korea for the construction of four fuel-efficient 113,000dwt LR2 product tanker newbuildings, at a value of about $47 million each.

The agreement includes fixed-price options for up to 12 additional LR2 newbuildings that can be declared over the next 18 months. Upon delivery, it is expected that the vessels will operate in Teekay Corporation's Taurus Tankers LR2 Pool, one of the largest LR2 pools with some 20 product tankers.

"The shift in global refining capacity east of the Suez Canal, development of new long-haul product tanker trading patterns, including the potential for increased U.S. exports, and a relatively modest orderbook, make the LR2 segment a particularly attractive growth area for Teekay Tankers," said Bruce Chan, Teekay Tankers' CEO. "With their fuel-efficient design, which is estimated to result in 20% to 30% fuel savings compared to current vessels in the existing LR2 fleet, we believe these newbuildings will be very attractive to our customers. Furthermore, we believe the vessel deliveries are well-timed to benefit from expected improvements in refined product and global crude oil tanker market fundamentals."

Teekay Tankers currently owns a fleet of 27 double-hull vessels, including 11 Aframax tankers, 10 Suezmax tankers, three LR2 product tankers, three MR product tankers, and has time-chartered in two Aframax tankers.

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