International Seaways (INSW) has entered into an agreement to build three dual-fuel LNG very large shipping vessels, expected to be delivered in 2023.
INSW, one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, already owns and operates a fleet of 36 vessels, including eleven very large shipping vessels.
The three new vessels will be constructed at South Korean shipyard DSME. Upon delivery, they will begin seven-year time charters with Shell.
INSW expects to fund the construction costs with cash and long-term financing.
Lois K. Zabrocky, International Seaways’ president and CEO, said: “We are pleased to partner with market-leading counterparty Shell on these three dual-fuel LNG VLCCs. In addition to generating strong, stable cash flows for seven years, with added upside due to profit-sharing above the base rate, we are once again renewing our fleet at very attractive levels. Importantly, we expect these tankers to be well suited to adhere to future environmental regulation throughout their life, as they meet both today’s IMO Energy Efficiency Design Index (“EEDI”) and also exceed the 2025 Phase III EEDI targets by about eight percent. Their significant environmental benefits, including substantially reducing our carbon footprint, are in keeping with Seaways’ commitment to ESG-focused corporate citizenship, and we are proud to continue to be at the forefront of sustainability initiatives in the maritime sector.”