Euronav brings its ammonia-powered VLCC tally to three, adds two Suezmax orders to the mix

Belgian tanker company Euronav NV confirmed this morning that it has lifted the option for one more very large crude carrier (VLCC) at Chinese shipyard Qingdao Beihai and ordered two Suezmaxes at Daehan Shipbuilding in South Korea.

The confirmation comes on the heels of shipbroker reports on the order and follows the lifting of VLCC construction options at CSSC Qingdao Beihai Shipbuilding in October and August.

Euronav now has three VLCCs on order at Qingdao Beihai and the purchase price is $ 112.2 million per vessel. The vessel is expected to be delivered in Q4 2026 and will be ready to be powered by a dual-fuel diesel-ammonia engine.

Furthermore, Euronav has concluded two newbuilding ice classed Suezmax orders at Daehan Shipbuilding. These two new ships have been long-term time chartered to Valero. Delivery of these vessels is expected in April/May 2026 when each of the time charter contracts will begin.

“We are very happy to extend our series of ammonia-powered VLCCs at Qingdao Beihai. We now have three state-of-the-art VLCCs on order that are attractively priced and will deliver within 2026,” CEO Alexander Saverys said.

“We are also delighted to extend our relationship with our long-standing customer Valero with an order of 2 new Suezmaxes that will enter long-term time charters. These two transactions reflect the strength of Euronav’s position in the tanker market and the rapid application of our new strategy. We look forward to updating you in detail on our strategy at our upcoming capital market day in Q1 2024.”

Saverys has taken the helm at Euronav following the completion of Frontline’s sale of its stake in Euronav in return for acquiring a lion’s share of the company’s ECO VLCC fleet of 24 vessels.

CMB has become Euronav’s majority shareholder with 49.05% ownership of the company’s issued shares, translating to a commanding 53% of voting rights, and a mandatory takeover bid planned for later this year.

Management board members Lieve Logghe, Brian Gallagher, Alex Staring, and Thierry De Grieze had their management board responsibilities terminated at the end of November, and Alexander Saverys, Chief Executive Officer of the CMB Group, took over the role of Euronav’s CEO.  

CMB has already laid out a strategic plan for Euronav, centered on three key pillars: fleet diversification, decarbonization, and optimization.