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March 20, 2017

Hudong-Zhonghua Shipbuilding to build two chemical tankers for Odfjell

Chinese company Hudong-Zhonghua Shipbuilding has entered a letter of intent (LoI) to build two new chemical tankers for Norway's Odfjell for around $116m.

Chinese company Hudong-Zhonghua Shipbuilding has entered a letter of intent (LoI) to build two new chemical tankers for Norway's Odfjell for around $116m.

The latest deal also includes various options, and follows orders already committed at the shipbuilding company for four 49,000dwt vessels with 33 stainless steel cargo tanks.

The two ships will feature stainless steel cargo tanks, and will have 38,000dwt of capacity and 40 tanks.

Both vessels will be built to run on dual fuel solution and be capable of carrying approximately 45,000cbm of cargo.

Odfjell CEO Kristian Mørch said: “Following this order and other commitments recently taken, most of our renewal needs for the ‘super segregators’ have been met.”

"The latest deal also includes various options, and follows orders already committed at the shipbuilding company for four 49,000dwt vessels with 33 stainless steel cargo tanks."

Odfjell has also recently completed long term bareboat charter agreements with an undisclosed entity for two chemical tankers with stainless steel cargo tanks.

The bareboat charter deals will fulfil Odfjell’s strategic targets for fleet renewal and growth, and are set to include two 36,000dwt capacity vessels with 28 stainless steel cargo tanks. The deal is expected to run for a minimum of ten years.

The vessels are scheduled to be built at a Japanese shipyard, and delivery is expected by the last quarter of 2019 and the second quarter of 2020 respectively.

Odfjell has also exercised its $16.7m purchase option for Bow Architect, a 2005 built 30,000dwt stainless steel chemical tanker with 28 cargo tanks.

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