On March 20, Belgian tanker giant Euronav released a statement on its official website, saying that the company will further optimize its fleet through the sale of three very large crude carriers (VLCCs), as well as receive one 210,000 dwt Ammonia-ready (Amonia-ready) Newcastlemaxes bulk carrier and order two types of three new ships.
According to the statement, the three VLCCs that have been sold are the Nectar, Noble and Newton, the first two built in 2008 and the third in 2009, all with a deadweight of 307,208 tons. The transaction will generate a capital gain of $83.5 million, reaffirming Euronav & CMB.TECH’s capital recovery strategy based on the historical highs of the tanker market.
The newbuilding program consists of two 210,000 dwt ammonia reserved Newcastlemaxes bulk carriers and one 319,000 dwt ammonia reserved VLCC, all of them will be built by China State Shipbuilding Group’s Qingdao Beihai Shipbuilding which are expected to be delivered in the first quarter of 2027 and the second quarter of 2027. Together with the latest order, Euronav & CMB.TECH has placed an order for 5 ammonia reserved VLCCs and 24 ammonia reserved Newcastlemaxes bulk carriers at Beihai Shipbuilding.
In August 2023, Beihai Shipbuilding and Euronav signed the first batch of 1+1 319,000 dwt ammonia reserved VLCC construction contract, with which Beihai Shipbuilding formally entered into the VLCC construction market. Meanwhile, this is also the first time that Euronav orders VLCCs from a Chinese shipyard, and the optional order was declared effective in October of the same year.
On November 30, 2023, Euronav placed an additional order with Beihai Shipbuilding for a third VLCC of the same type, which was confirmed on December 7, 2023, with all three VLCCs scheduled for delivery in the second half of 2026. In January 2024, Euronav once again returned to Beihai Shipbuilding to place an additional order for 1+2 319,000 dwt ammonia reserved VLCCs, which are expected to be delivered in the first quarter of 2027. The unit price of the first four VLCCs is $112.2 million, and if calculated in this way, the total value of the orders for the five VLCCs is $561 million (about RMB 4.038 billion).
It is understood that this series of VLCC is designed by China Ship Design & Research Center Co., Ltd. It has an overall length of 339.50 meters, a beam of 60.00 meters, a depth of 30.30 meters, a structural draught of 22.50 meters with a speed of 14.5 knots, which meets the requirements of the third stage of the Energy Efficiency Design Index (EEDI) index for ships. And in the future, it can be equipped with two 6,000 m3 ammonia fuel storage tanks, achieving the VLCC’s full lifecycle of “Zero Carbon”.
As the main ship type to be built by Beihai Shipbuilding, the 210,000 dwt Newcastlemaxes bulk carrier has been ordered several times by CMB.TECH and will be of ammonia reserved design. A few days ago (March 18), Euronav & CMB.TECH has taken delivery of the 4th ammonia reserved Newcastlemaxes bulk carrier “Mineral France” from Beihai Shipbuilding. After delivery, it will operate to carry cargoes such as coal, grains and mineral ores.Euronav & CMB.TECH will take delivery of six more bulk carriers of the same type this year.
It is reported that, excluding the above latest order, Beihai Shipbuilding has received 13 210,000 DWT ammonia reserved Newcastlemaxes bulk carriers this year.
This Newcastlemaxes bulk carrier is designed by CSDC, a design company under Beihai Shipbuilding. With an overall length of 300 meters, a beam of 50 meters, a depth of 25.2 meters, a structural draught of 18.4 meters and a speed of 14 knots, it can meet the requirements of the Energy Efficiency Design Index (EEDI) Phase III. Meanwhile, it meets the ammonia fuel reservation, and will be equipped with ammonia-fueled main engine to ensure that ammonia fuel can be used in the future.
At present, Beihai Shipbuilding continues to focus on the market of large bulk carriers, and the market share of Newcastlemaxes-type bulk carriers’ hand-held orders ranks first in the world. Among them, the share of new energy and green ship types of hand-held orders accounted for more than 90%.