Performance Shipping orders LNG-ready tanker duo in China

Athens-based Performance Shipping will spend about $130 million on the construction of two LNG-ready LR2 Aframax tankers at China’s Shanghai Waigaoqiao Shipbuilding.

The New York-listed operator of seven Aframax tankers revealed in a statement on Wednesday that its units signed the shipbuilding contract with China Shipbuilding Trading and SWS for the newbuild vessels each worth about $64.8 million.

Performance Shipping expects to take delivery of the 114,000-dwt LNG-ready LR2 Aframax product/crude oil tankers in January and April of 2026.

According to Performance Shipping, the vessel will have an electronic main engine with high-pressure selective catalytic teactor for Tier III NOx emissions compliance.

Also, the newbuilds will feature exhaust gas cleaning systems for Tier II compliance, and ballast water treatment systems.

“These shipbuilding contracts supplement the previous contract we entered into with SWS in March 2023 for a Tier III product/crude oil carrier scheduled for delivery around October 2025,” CEO Andreas Michalopoulos said in the statement.

Following the sale of the company’s oldest, 2007-built, Aframax tankers, P. Fos in October 2022 and P. Kikuma in November 2023, the company is now poised to take delivery of three identical sister vessels in late 2025 through early 2026.

“We believe that tanker fleet growth will reach historical lows in the coming years and maintaining a modern fleet among an aging global fleet during periods of high seaborne trade demand will result in sustainably strong fundamentals and higher asset values,” Michalopoulos said.

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