Performance Shipping orders LNG-ready Aframax
US-listed shipping company Performance Shipping has signed a $62.2mn contract with China Shipbuilding Trading Company and Shanghai Waigaoqiao Shipbuilding Company for the construction of an LNG-ready LR2 Aframax product/crude oil tanker, it said on March 8.
The 114,000 dwt vessel will be equipped with an electronic main engine with a high-pressure selective catalytic reactor for tier III compliance, an exhaust gas cleaning system for tier II compliance, and a ballast water treatment system. The company expects to take delivery of the vessel during the fourth quarter of 2025.
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“This contract is consistent with our view that historically low tanker fleet growth in the next few years and an aging fleet during a high seaborne trade demand period will result in sustainably strong fundamentals and higher asset values,” CEO Andreas Michalopoulos said.
Performance Shipping will pay 15% of the purchase price upon receipt of a refund guarantee, expected to occur within 30 days; 10% of the purchase price is payable at each of the milestones of steel cutting, keel laying and launching of the vessel, and the remaining 55% of the purchase price is payable upon the vessel’s delivery.