Euronav orders ammonia/methanol-ready Suezmax tanker duo

Belgium-based tanker company Euronav has ordered two new eco-friendly Suezmax tankers from South Korean shipbuilding firm Daehan Shipbuilding Co.

As informed, the new 157,310 DWT ships will be sister vessels to Cedar and Cypress, which are also built at the same yard.

The units are the latest generation of eco-Suezmax tankers and are fitted with both exhaust gas scrubber technology and ballast water treatment systems.

They have the structural notation to be liquefied natural gas (LNG) ready, with both partners working closely to also have the structural notation to be ammonia and methanol ready. This provides the option to switch to other fuels at a later stage, according to the company.

Both tankers are scheduled for delivery in the third quarter of 2024.

“Sustained elevated contracting activity from other shipping segments has reduced available capacity to build crude tankers, at a time when the sector needs to replace maturing vessels with more environmentally friendly designs,” Hugo De Stoop, Euronav CEO said.

The transaction is consistent with the core company objectives and strategy of investing in zero-carbon shipping. Euronav intends to use existing liquidity and will raise appropriate financing before the delivery of those ships.

“With this contract, adding to the 2 Suezmaxes delivered earlier this year and three other Suezmax newbuildings under construction, Euronav is tangibly driving innovation, investing in the energy transition and showing agility in seizing another opportunity to further rejuvenate our Suezmax fleet,” De Stoop noted.

Last year, the firm signed contracts for the construction of two very large crude carriers (VLCCs) with South Korean shipbuilder Hyundai Samho Heavy Industries (HSHI).

The vessels will be LNG-ready and consequently, there is an ability to cut CO2 emissions compared to current market standards.

Furthermore, Euronav said it is working in cooperation with the yard and classification societies Lloyd’s Register and DNV to include an ammonia-ready notation with the potential to reduce CO2 emissions to zero when technology, logistics and the regulatory framework allows for it. The partners signed a joint development project (JDP) in July last year to address challenging emission reduction objectives.