Torm orders four LR2 product tankers in China, plus options

Torm orders four LR2 product tankers in China, plus options

Denmark’s Torm has returned to Guangzhou Shipyard International (GSI) to order four LR2 product tankers with fuel-efficient designs for a price of around $200m en bloc.

The firm vessels are due for delivery between the final quarter 2017 and the second quarter of 2018, Torm said today.

The construction contract includes options for up to six additional LR2, LR1 or MR vessels for delivery in 2018 and 2019.

The $200m contract price includes “extra costs related to Torm’s design requirements and supervision”, the company said, adding that it is still in negotiations with potential lenders.

“I am very pleased that TORM has utilized its long-term relationship with Guangzhou Shipyard International to enter into an agreement to purchase four LR2 newbuildings with an option for an additional six vessels. Given the market outlook, we see this as an attractive way to grow and renew our LR2 fleet at a favorable price”, CEO Jacob Meldgaard said in a statement.

Sixteen of Torm’s 72 product tankers were built by GSI vessels in the current fleet. Torm also has three 50,000-dwt MR product tankers under construction at Sungdong in South Korea.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

Related Posts