Athens-based Performance Shipping will spend about $62.6 million on the construction of an LNG-ready LR2 Aframax tanker at China’s Shanghai Waigaoqiao Shipbuilding.
The New York-listed operator of eight Aframax tankers revealed in a statement on Wednesday that its unit signed the shipbuilding contract with China Shipbuilding Trading and SWS for the newbuild vessel.
Performance Shipping expects to take delivery of the 114,000-dwt LNG-ready LR2 Aframax product/crude oil tanker during the fourth quarter of 2025.
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 newbuild will feature exhaust gas cleaning system for Tier II compliance, and ballast water treatment system.
“We are pleased to have secured one of the remaining delivery slots for LR2/Aframax tankers with a 2025 delivery date,” CEO Andreas Michalopoulos said in the statement.
“This contract is consistent with our view that historically low tanker fleet growth in the next few years and an aging fleet during a high seaborne trade demand period will result in sustainably strong fundamentals and higher asset values,” Michalopoulos said.
Last year, SWS completed the construction of four LNG-powered Aframax tankers for China’s Bank of Communications Financial Leasing Co (Bocomm Leasing) and charterer Shell.
Besides LNG-powered tankers, SWS is also building LNG-powered bulk carriers.