Scorpio orders six product tankers at two South Korean shipyards

27 March 2013 (Last Updated March 27th, 2013 18:30)

Scorpio Tankers has placed orders for the construction of six Long Range 2 (LR2) product tankers at two South Korean shipyards for $300m.

Scorpio Tankers has placed orders for the construction of six Long Range 2 (LR2) product tankers at two South Korean shipyards for $300m.

Out of the six LR2 newbuildings, Hyundai Samho Heavy Industries (HSHI) will build four 114,000dwt vessels for $50m each.

The order follows Scorpio’s recent agreement signed with HSHI in March 2013 for two similar vessels and also includes fixed-priced options for additional LR2 newbuildings at the yard.

All the vessels on order at HSHI are scheduled to be delivered in the third quarter of 2014.

The remaining two 114,000dwt tankers will be built by Daewoo Shipbuilding & Marine Engineering (DSME) at a cost of $50m per vessel.

The order with DSME also includes fixed-price options for additional vessels, and both newbuilds are expected to be delivered in 2014.

Scorpio currently has 33 newbuilding product tankers on order with Hyundai Mipo Dockyard (HMD), SPP Shipbuilding, HSHI and DSME, including 19 medium range (MR), eight LR2 and six Handymax ice class-1A tankers.

Out of the total orders, one vessel is scheduled to be delivered by April 2013, while the remaining 32 are expected to be delivered by the end of 2014.