Scorpio orders LPG carriers at two South Korean shipyards

2 July 2013 (Last Updated July 2nd, 2013 18:30)

Scorpio Tankers has signed agreements with South Korean shipyards Hyundai Samho Heavy Industries (HSHI) and Daewoo Shipbuilding and Marine Engineering (DSME) to build a minimum of five and up to ten very large gas carriers (VLGC) for about $74m each.

Scorpio Tankers has signed agreements with South Korean shipyards Hyundai Samho Heavy Industries (HSHI) and Daewoo Shipbuilding and Marine Engineering (DSME) to build a minimum of five and up to ten very large gas carriers (VLGC) for about $74m each.

The 84,000m³ tankers are designed for the transportation of liquefied petroleum gas (LPG).

Out of the first five vessels, two will be delivered in the second quarter, one in the third quarter, and two in the fourth quarter of 2015.

According to Scorpio, the deal replaces the previously announced agreement to build four Long Range 2 (LR2) vessels at Samsung Heavy Industries (SHI).

The company has also taken delivery of its ninth medium range (MR) product tanker, ‘STI Le Rocher’, which has started a time charter for up to 120 days at a rate of $19,000 per day.

The company has also agreed to time charter-in an LR2 product tanker that is expected to be delivered in September 2013 for one year at $16,500 per day.

In March 2012, Scorpio placed orders for the construction of six LR2 product tankers for $300m at HSHI and DSME.

Out of the six LR2 newbuildings, HSHI will build four 114,000dwt vessels, while the remaining two 114,000dwt tankers will be built by DSME.

Scorpio currently has 54 newbuilding product tankers on order, including 25 MR, 12 LR2 and 12 Handymax ice class-1A tankers.

Out of the total orders, three vessels are scheduled to be delivered by September 2013, 38 within 2014, while the remaining 13 are expected to be delivered by the end of 2015.