Euronav Orders Two Suezmax Tankers from Daehan Shipbuilding

Oil tanker firm Euronav has ordered two Suezmax tankers from South Korea's Daehan Shipbuilding for an undisclosed fee.

The vessels will be sister ships to Cedar (2022 -157,310 dwt) and Cypress (2022 – 157,310 dwt), built at the same yard. 

Both vessels are scheduled for delivery in the third quarter of 2024. 

"The vessels are the latest generation of eco-Suezmax tankers and are fitted with both Exhaust Gas Scrubber technology and Ballast Water Treatment systems. The vessels have the structural notation to be LNG Ready, with both parties working closely to also have the structural notation to be Ammonia and Methanol Ready," Euronav said, explaining that these notations will provide the option to switch to other fuels at a later stage. 

Hugo De Stoop, Euronav CEO said: “As a market leader in our segment, Euronav has been able to source a highly competitive contract with a very attractive delivery schedule. Sustained elevated contracting activity from other shipping segments has reduced available capacity to build crude tankers, at a time when the sector needs to replace maturing vessels with more environmentally friendly designs. 

"With this contract, adding to the two Suezmaxes delivered earlier this year and three other Suezmax newbuildings under construction, Euronav is tangibly driving innovation, investing in the energy transition and showing agility in seizing another opportunity to further rejuvenate our Suezmax fleet.” 

Euronav said that it planned to use existing liquidity and will raise appropriate financing before the delivery of those ships. Balance sheet debt leverage will continue to remain conservative and appropriate for Euronav to retain its strength and flexibility in navigating the tanker cycle,"