Philadelphia-based Philly Shipyard has started construction on the first product tanker in a series of four vessels order for American Petroleum Tankers (APT), a subsidiary of Kinder Morgan.
In August, Kinder Morgan had entered into a definitive agreement valued at an all-in price of $568m with Philly Tankers to procure four new tankers to be manufactured at the Aker Philadelphia Shipyard in Philadelphia, Pennsylvania.
Kinder Morgan Terminals president John Schlosser had then said: "There continues to be strong demand for domestic waterborne transportation to move petroleum products and crude oil, and our fleet of highly efficient tankers will provide stable, fee-based cash flow to KMI shareholders for many years to come through multi-year contracts.
"This latest transaction clearly underscores Kinder Morgan’s commitment to marine transportation of crude oil, condensate and refined products in the US domestic trade."
The vessels are expected to be delivered at the end of 2016 and 2017.
After its delivery, it will be deployed to the US domestic service, commonly referred to as the Jones Act trade.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The Tier II vessels will augment Kinder Morgan’s existing Jones Act tanker fleet to 16 ships by late 2017.
The 600ft-long and 50,000-deadweight-ton vessels will be equipped to ferry 50,000t of crude oil or refined petroleum products.
The tankers are expected to enhance the flexibility of cargo delivery and promote fuel efficiency as well as will incorporate environmental protection features, including a Ballast Water Treatment System.
Philly Shipyard is also constructing two 50,000dwt product tankers for Crowley Maritime Corporation and the expected delivery will be in 2016 as well as two 3,600 TEU containerships for Matson Navigation Company with planned deliveries in 2018.