Tsakos Energy Navigation (TEN) signed an order of six LNG-powered tankers at South Korean shipyard Daehan Shipbuilding.
The contract is for building 4 Aframax Crude Oil Carriers and 2 optional LR2 Petroleum Product Carriers. As disclosed, the contract worths KRW 500 billion ($417 million) marks the biggest contract value of Daehan Shipbuilding since it was established. The contract was delayed around 4 months due to the significant rise in steel prices which is doubled compared to last year.
According to the agreement, the vessels are able to operate on LNG and conventional fuel, expected to reduce carbon emissions. The first steel cut is planned for September 2022, and the delivery of tankers is scheduled between September and December 2023.
“LNG- powered ships have been considered as the most efficient alternative to existing ships since the IMO tightened environmental regulations, they are expected to lead the eco-friendly ship market before the development of ammonia ships. Therefore, securing orders for LNG-powered ships is an important task for the company to secure future competitiveness,” Daehan Shipbuilding stated.
Daehan Shipbuilding completed technology development for LNG-powered ships in 2018. Meanwhile, the firm received approval in principle (AiP) for LNG bunkering ships and for small LPG carriers from classification society DNV.
Prior to the AiP, Daehan and DNV had collaborated on(JDP) on small-size LPG carriers using LPG as dual fuel.