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DSME inks Letter of Intent for 10 LNG-powered VLCCs

DSME inks Letter of Intent for 10 LNG-powered VLCCs

A Letter of Intent (LoI) has been signed by South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering to develop 10 very large crude carriers powered by LNG for an undisclosed European client.

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If the deal goes ahead for the ten 300,000-ton dual fuel VLCCs, its value could surpass KRW 1.1 trillion ($1 billion), with an approximate value of about $100 million for each tanker.

DSME plans to finalize the agreement in the first quarter of 2021, based on the survey.

For South Korean shipbuilding majors, having reported a flurry of orders over the past month, it has been a very busy time, helping to end the year on a more positive note.

DSME announced last week that it had won a $260 million order from the Abu Dhabi National Oil Company for three VLCCs (ADNOC). For three additional ships, the deal includes options.

DSME claimed that instead of being fitted with a scrubber, the ships are intended to run on low sulphur fuel to reach the IMO 2020 Sulphur Cap or feature a dual-fuel engine that allows the ship to run on LNG as its possible future fuel.

The ships are expected to be delivered in the first quarter of 2023.

In its weekly bulletin, Clarksons Platou Shipbroking said that UK-based Zodiac Maritime was behind the order, adding that the ships will each have 15,000 TEU capacity.

The deal is worth $652 million, the shipbuilder announced in a regulatory filing (KRW 722.6 billion).

Maritime Business World 

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