Frontline snatches six new VLCCs in $566 million resale deal

John Fredriksen’s oil shipping firm Frontline said it would buy six “ECO-type” VLCCs currently under construction at South Korea’s Hyundai Heavy Industries for $565.8 million.

The price includes an estimated $25.7 million in additions and upgrades to the standard specifications of the vessels, Bermuda-based Frontline said in a statement.

Moreover, the vessels would operate on different fuels, including biofuel. They can be converted or retrofitted to consume fuels like LNG or ammonia, the firm said.

They will also feature exhaust gas scrubber technology, anti fouling systems, and digital energy performance solutions.

Hyundai Heavy will deliver five of the ships during 2022, starting in the first quarter, and the last vessel in the first quarter of 2023.

In addition, Frontline said it would meet the financing of this acquisition with existing borrowing facilities and would establish long-term financing closer to delivery of the vessels.

“This transaction is consistent with our core company goals to increase exposure to the VLCC market without adding to existing vessel supply,” Lars Barstad, interim CEO of Frontline Management, said.

“With this acquisition Frontline is tangibly moving on our journey towards lower carbon emissions,” he said.

Frontline did not reveal the current owner of the ships but VesselsValue data shows that Evangelos Pistiolis-led Central Mare sold the six VLCCs.

The 300,000-dwt vessels will have a length of about 330 meters, according to the data.

Most Popular

Venture Global, Petronas seal 20-year LNG SPA

US LNG exporter Venture Global LNG has signed a 20-year LNG supply contract with Malaysian energy giant Petronas for volumes from the CP2 project in Louisiana.

Golden Pass LNG seeks re-export approval

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is seeking approval from the US DOE to export previously imported LNG from October, as it nears the launch of the first liquefaction train.

TPDC, Energetech Tantel to develop Tanzanian small-scale LNG plant

State-run Tanzania Petroleum Development Corporation has signed a memorandum of understanding with Energetech Tantel to develop what they say is Tanzania's first small-scale LNG plant.

More News Like This

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

HD Hyundai Heavy tests BOG system on LNG-powered containership under construction

South Korean shipbuilder HD Hyundai Heavy has completed a test to verify the onshore recycling of boil-off gas (BOG) from an LNG dual-fuel container vessel currently under construction.

HD Hyundai Heavy scores LNG-powered containership order

South Korea's HD Hyundai Heavy Industries has secured an order to build eight LNG dual-fuel container vessels valued at about $1.76 billion.

GTT, HD Hyundai Heavy to advance LNG carrier design

French LNG containment firm GTT signed two joint development projects with South Korean shipbuilder HD Hyundai Heavy Industries, aimed at advancing the design of LNG carriers.