International Seaways ordered two LNG-ready tankers in 2Q 2023

New York-based shipping company International Seaways placed an order for two LNG-ready dual-fuel tankers in the second quarter of this year that are set to be delivered in 2025.

PHOTO: International Seaways took delivery of LNG-ready dual-fuel vessels in March and April this year. International Seaways

LNG-ready means that the vessels may not be capable of operating on LNG when they are delivered, but will have the provision for future retrofits.

The scrubber-fitted long-range (LR1) tanker ships will be constructed by South Korea’s K Shipbuilding, International Seaways announced in its second-quarter result update. The vessels will be delivered in the second half of 2025.

The tanker company also took delivery of three dual-fuel LNG very large crude carriers (VLCC) in the previous quarter. 

According to DNV data, only 14 LNG-fuelled vessels were ordered in July, a significant drop from the 26 LNG-fuelled vessels ordered in June.

However, LNG has been trading at a discount to VLSFO at major global ports such as Singapore and Rotterdam. As a result, LNG is expected to see more demand from the shipping sector.

Himalaya Shipping’s chief executive, Herman Billung has predicted LNG prices to trade at a discount to oil in the future. A sustained cooldown in LNG prices could spur LNG vessel orders and motivate LNG-powered dual-fuel vessels to burn more LNG than VLSFO or other fossil fuels, a trader told ENGINE.

By Konica Bhatt

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