Singapore-based diversified shipping company Eastern Pacific Shipping (EPS), led by Idan Ofer, has returned to Guangzhou Shipbuilding International (GSI), a subsidiary of China State Shipbuilding Corporation (CSSC), to place shipbuilding orders to further expand its tanker fleet.
According to Trade Winds, EPS has signed a contract with GSI for the construction of four 111,000 dwt liquefied natural gas (LNG) dual-fuel powered LR2 product tankers, bringing its order book for the same product tankers at the shipyard to eight, which are expected to be delivered in 2026.
Shipbuilding sources said that GSI’s delivery schedule has been scheduled until 2028, and due to its improved productivity and EPS’s status as an “old customer”, the shipyard has “squeezed out” a few 2026 product tanker slots for EPS.
Shipbrokers believe that EPS’s latest order for four LNG dual-fuel powered LR2 product tankers carries a “premium” in light of earlier delivery dates and a general increase in global ship prices. The price of each LR2 product tankers is in the range of $82 million to $83 million, an increase of 13% to 18% over the cost of the same type previously ordered from GSI. Based on this calculation, the total value of the four new product tankers contracted is between $328 million and $332 million.
It is understood that the first four LNG dual-fuel powered LR2 product tankers undertaken by GSI for EPS were contracted on June 6, 2023 and February 28, 2024, and will be delivered in March 2026 (one), December 2026 (two) and March 2027 (one), respectively.
Including the latest order, EPS Shipping has placed a total of 11 LR2 tankers with Chinese shipyards. The other three 115,000 dwt conventionally fueled LR2 product tankers are being built by Shanghai Waigaoqiao Shipbuilding (two) and Zhoushan Changhong International (one), with the cost of a single unit ranging from $61 million to $63 million respectively, and are expected to be delivered in 2025.
It is understood that EPS wants to build a fleet of 50 product tankers, but currently owns only 4 LR2 product tankers and 16 MR product tankers. In terms of MR product tankers, EPS has signed contracts for 12 newbuildings, with New Times Shipbuilding, Fujian Mawei Shipbuilding, and HD Hyundai Vietnam Shipbuilding constructing for 6, 4, and 2 respectively, all of which are to be delivered from 2025 to 2027. And EPS is holding an option order for 4 product tankers at Mawei Shipbuilding.
With a fleet of nearly 190 vessels in operation and one of the largest newbuilding programs in the world, EPS has ordered more than 80 new shipbuildings valued at approximately $6 billion, including container ships, pure car and truck carriers (PCTCs), very large liquid ammonia carriers (VLACs), Suezmax tankers, as well as Newcastlemax bulk carriers and LNG carriers.