US tanker owner International Seaways has entered into contracts with Clean Marine of Norway and a qualified system installer for the purchase and installation of scrubbers on seven of its modern VLCCs, with an option to install the system on further three VLCCs.
The seven scrubbers are expected to be installed before January 1, 2020, when the new IMO sulfur emission cap goes into effect.
International Seaways will fund the installation through available liquidity.
“Following significant economic analysis and evaluation of different systems, we are pleased to have executed contracts to install scrubbers on a large portion of our VLCC fleet,” said Lois Zabrocky, President and CEO of International Seaways. “We believe that by installing scrubbers on our largest ships, we will gain an economic advantage while further demonstrating a commitment to the environment as we did with our recent acquisition of highly efficient VLCCs. In addition to being well positioned to capitalize on a market recovery based on International Seaways’ sizeable high-quality fleet, our scrubber initiative also strengthens the Company’s ability to take advantage of a potential strong tanker market resulting from the IMO regulations, as both crude and product tankers stand to benefit from increased transportation demand,” Zabrocky added.
International Seaways owns and operates a fleet of 52 vessels, made up of 14 VLCCs, two suezmaxes, seven aframaxes/LR2s, 11 panamaxes/LR1s and 12 MR tankers.