Euronav buys Suezmax tankers under construction, set to be LNG and Ammonia-ready

Antwerp-based tanker shipping company Euronav NV has entered into a deal to acquire two eco-Suezmax newbuildings through a resale.

Currently completing construction at the Daehan Shipyard in South Korea, the tankers are being acquired for an en-bloc price of $ 113 million. Both vessels are due for delivery in January 2022.

Euronav said that the vessels were the latest generation of Suezmax Eco-type tankers. They will be fitted with scrubbers, ballast water treatment systems, and have the structural notation to be LNG Ready.

The shipowner added that it was working closely with the shipyard to also have a structural notation to be Ammonia Ready. This provides the option to switch to other fuels at a later stage.

“The current disruptions to the freight market have provided this opportunity and our strong balance sheet allowed us to act quickly on it. This is in line with our strategy of acquiring good assets at attractive points in the cycle,” Hugo De Stoop, CEO said. 

The company further explained that since new vessels are resales, they are not adding to projected vessel supply.

Euronav intends to use existing liquidity and will raise appropriate financing before the delivery of those ships.

The crude oil transportation company has a fleet of owned and operated ships consisting of 2 V-Plus vessels, 45 VLCCs, two to be delivered, 26 Suezmaxes, and 2 FSO vessels.