Eastern Pacific inks deal for up to 4 dual-fuel LR II tankers with GSI

Singapore-based ship management company Eastern Pacific Shipping (EPS) has signed a construction contract for 2+2 LNG dual-fuel LRII tankers with Chinese shipyard Guangzhou Shipbuilding International Co., a subsidiary of China State Shipbuilding Corporation, and CSSC Trading.

The order for the 111,000 dwt tankers brings GSI’s ordering tally for LNG dual-fuel LRII tankers to 16, which has secured the shipyard’s top ranking in the Chinese market for this type of ships.

The vessels are designed and developed in-house by GSI with environmental stewardship and efficiency in mind.

They will feature a length of 250 meters, a molded width of 44 meters, a structural draft of 14.7 meters, and a service speed of 14.5 knots. According to GSI, they will meet the rigorous emission standards of IMO TIER III and Phase 3 of the EEDI energy efficiency index. The delivery of the firm ships is slated for 2025 and 2026. If all options are exercised, the deal is expected to hit $280 million in value.

The vessels’ other characteristics include swift velocity, lightweight construction, reduced energy consumption, and remarkable adaptability.

The latest order builds on the existing fruitful collaboration between the two companies. Namely, in 2022 GSI delivered the world’s first LNG dual-fuel Suezmax tanker to EPS.

The 157,300 dwt Greenway can reduce carbon dioxide emissions by about 23%, nitrogen oxide emissions by about 90%, and particulate matter and sulfur oxide emissions by 99% when propelled in LNG mode, according to EPS.

GSI said that the new contract, signed at Nor-Shipping 2023 in Oslo, Norway, will help EPS move forward with its strategy of building ships powered by clean and alternative fuels while also solidifying GSI’s position in the LR Ⅱ ship sector. The deal also underscores China Shipbuilding Group’s ongoing commitment to environmentally-friendly ship design and construction, the shipbuilder added.

Eastern Pacific Shipping currently manages 220 vessels and has 80 vessels on order. The company revealed that it has invested $1.8 billion across 14 decarbonization projects, including dual-fuel
vessels, carbon capture, biofuels as well as voyage optimization technology.

The ship manager’s data shows that 74 of the 220 managed vessels on order and on water are powered by dual-fuel technology, including LNG, LPG, and ethane which are being used as transitional fuels before EPS moves to ammonia.

“These investments have already allowed us to reach an AER of 4.1 in 2022, a 20% reduction over the past seven years. We estimate that these investments will eliminate 10 million tons of CO2 emissions over the life of the vessels, offsetting the equivalent of 27 million trees, four times the number of trees in all of Singapore, or 150,000 cars,” Cyril Ducau, CEO of EPS said earlier.